Ministry sees risk of mortgage rates going higher than 8% in 2021

MOSCOW, Oct 20 (PRIME) -- Russia’s Construction, Housing, and Utilities Ministry believes there are risks of mortgage rates going higher than the target threshold of 8% under the Housing and Urban Area national project, Deputy Minister Nikita Stasishin said at a real estate forum on Wednesday.

“It’s better we say it now than later contemplate how come it happened,” Stasishin said.

According to Stasishin, the possible increase in the mortgage rate beyond the indicators of the national project is due to the fact that the previous forecast did not provide for a key rate, “which we have now or will have in the near future.”

He refused to give any precise estimates on the possible mortgage rates as the end of 2021, and said that the rates will directly affect the volume of housing sales and the state of Russia’s real estate market.

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