Mortgage rates in Russia have reached their lowest levels since 2018. According to Dom.RF, the average weighted offer rate of the top 15 mortgage banks in terms of market products for new buildings is 8.48 percent, for finished housing - 8.72, for refinancing - 8.57.
Mortgage rates have been steadily declining since the second half of April amid the easing of the monetary policy of the Bank of Russia. At the moment, the key rate of the Central Bank is 5.5 percent and may decrease in the near future.
Rates in the segment of new buildings turned out to be lower than the market rates as a result of /">mortgage government-supported programs. The most notable of these programs is the preferential
mortgages for new buildings at 6.5 percent. The average rate on loans for new buildings in April, taking into account such programs, was 6.94 percent. In May, they accounted for more than half of the total
mortgages for new apartments.
It is expected that, taking into account state programs, the weighted average
mortgage the rate on new buildings will drop in 2020 relative to the rates on the secondary market by 1-1.5 percentage points and will contribute to the redistribution of demand in benefit of new housing. According to experts' forecasts, more than 1 million will be issued this year.
