Kommersant: the share of overdue mortgage loans in Russia fell to 0.6 percent
“Arrears” in the total volume of mortgages by November 1, 2021 dropped to 0.6 percent, a year ago it was 0.9 percent, Kommersant reports, citing data from the Central Bank.
The publication notes, however, that the statistical improvement in the payment discipline of mortgage holders was probably a consequence of the mortgage boom – immediately after receiving a loan, citizens almost always make payments on time, the situation usually begins to deteriorate several years later.
In general, as evidenced by the Central Bank's data, in the country there is a decline in the volume of mortgage lending: in September it was 5.3 percent, then it worsened to 8.4 percent. In total, mortgages worth 501 billion rubles were issued in October (a year ago in the same month – 546 billion).
The transition of the mortgage market to stabilization will be explained by the increased cost per square meter and the growth of interest rates on loans. The weighted average mortgage rate by the beginning of November reached 7.7 percent per annum. “Long-term developments in the mortgage market indicate its saturation, at least given the current income of the population and economic growth,” the newspaper concludes.
Earlier, in November, the head of the Central Bank Elvira Nabiullina said that the regulator did not consider it is necessary to extend the preferential mortgage program in Russia. As Nabiullina noted, the Central Bank proposes to complete it on schedule, since in addition to preferential mortgages for new buildings, there are other mortgage programs in Russia for certain categories of citizens.