Central bank says mortgage market overheating risks decline

MOSCOW, Aug 31 (PRIME) -- The risk of the Russian mortgage market overheating has decreased after changes in the cut-rate mortgage program and introduction of stricter terms of loans with low initial installments, the central bank said in a statement late on Monday.

"The risks of overheating have decreased due to the changes in the terms of a 6.5% state program and an increase of macroprudential surcharges on mortgage loans with a low initial installment (15–20%) from August 1, 2021," the document read.

According to the authority, housing prices grew by 7% on the primary and 4.4% on the secondary market in April–June. The high-risk loan share was significant at about 20%.

The central bank separately said that consumer lending was aggressive in April–June, and bad debt could increase to a certain extent.

End