Real interest rates, on which Russian lending institutions provides housing mortgage loans to households, could grow to 13.5% by the end of December 2014. The Agency for Housing Mortgage Lending (AHML) prepared this forecast for Banki.ru.
Based on the CBR’s data, as of October 1, 2014 banks issued slightly over 738,000 mortgage loans to Russians for a total of Rub 1.25 tln. Meanwhile, the weighted average rate on these loans reached 12.27% by late September, up 0.03% on the month. The regulator’s data, however, show that the mortgage rate has dropped to 12.5% YTD.
Mikhail Goldberg, head of marketing analysis and strategic planning at AHLM, said that the agency forecasts the mortgage lending rate to rise to 12.6% by year-end 2014 as large amounts were granted at the average rate of 12.2%. “By the end of December the real rate could grow to 13.5%," the Banki.ru interviewee thinks.
