Named the limit of lowering mortgage rates
The Bank of Russia predicts a further gradual reduction in mortgage rates and their stabilization at the level of seven to eight percent. This is reported by TASS with reference to the head of the Central Bank Elvira Nabiullina. “We proceed from the fact that our policy of reducing inflation and lowering rates will lead to the fact that mortgages will be even more affordable, and as a general rule, mortgage rates will be at the level of seven to eight percent,” the news agency quoted Nabiullina as saying. “Mortgage rates are already falling, the latest available data is 9.57 percent. This is certainly higher than the target of 7-8 percent. As inflation falls, as the key rate falls, we expect mortgage rates to fall as well,” the head of the Central Bank added. According to Nabiullina, the process of rate cuts will take place gradually and "without sudden movements." The head of the Central Bank also added, that the regulator is closely monitoring that there are no “bubbles” in the mortgage market. In the second quarter of 2018, many Russian banks announced a reduction in mortgage rates. So, in early June, the mortgage regulator "Dom.rf" and 100 percent owned by him bank "Russian Capital" lowered rates by 0.25-0.5 percentage points. Sberbank also announced a reduction in rates from June 9: for payroll customers, the rate on mortgage loans was reduced to 9.1 percentage points, for all others - to 9.4 percentage points.
