The Russian government wants to minimize the rise in housing prices against the backdrop of rising inflation in the country and in the world, said Deputy Prime Minister Marat Khusnullin. He predicts that the volume of issued mortgage loans by the end of the year will grow within 4-8%. The average mortgage rate will also rise, he admitted.
Mr. Khusnullin said that the task of the authorities is to try to minimize the rise in housing prices against the backdrop of “very serious global inflation.” According to him, the government can take measures, in particular, to support the construction industry. According to the Deputy Prime Minister, comprehensive measures will help to stabilize prices. He noted that “global and our inflation is not going anywhere, it will affect prices.”
“In the world, construction has risen in price by 15%, which means that the import component will rise in currency terms. In addition, we still have our own inflationary processes, because our own inflation is now already above 6%. This all puts a lot of pressure on house prices. We are very much afraid of this, we see huge risks in this, ”Marat Khusnullin told TASS.
He said that the volume of mortgage loans in Russia in 2021 could grow within 4-8%, up to 4.6-4.8 trillion rubles. In addition, against the background of the increase in the key rate and the rise in the price of preferential mortgages by the end of the year, the average mortgage rate will also increase, Mr. Khusnullin believes.
“If the rate of the Central Bank is now 5.5%, then 1.5-2.5 percentage points are added to it to calculate the mortgage rate. But due to the fact that in the first six months we had a fairly low rate, the average annual rate for the country at the end of the year will be above 7%. If last year we went to the figure of 7%, and even somewhere around 6.5% we had in certain regions, now, of course, the rate will rise slightly, ”the Deputy Prime Minister explained.
In April, the government decided to expand the program of preferential mortgages at 6% per annum for families with children for the construction of private houses. such loans can be taken by families in which a second or subsequent child was born after January 1, 2018 and until the end of 2022. Initially, the program allowed the purchase of only apartments in new buildings. In addition, by the end of the year, the government, together with the Central Bank, should launch a program for lending to individual housing construction.
Read more about the program of preferential mortgages – in the material of “Kommersant” “The mortgage knocked on a private house.”