The likely increase in mortgage rates in 2022 can be attributed to several factors. This was announced on Tuesday, December 21, by Mikhail Belyaev, Ph.D. in Economics, financial analyst, commenting on the words of Vitaly Mutko, General Director of the state company DOM.RF, who did not rule out an increase in mortgage rates on housing in new buildings next year from 9.2% to 10– 10.2%.
According to the expert, it is difficult to disagree with Mutko’s forecast, since mortgages are a type of loan provided by banks, and any loan rate is focused primarily on the key rate of the Central Bank (CB).
“We see that the Central Bank is raising the key rate, it is now 8.5%, plus a bank margin of 10% is easy to obtain,” he said in an interview with the Lenta.Ru portal.
The economist also noted that in addition to the key rate, the size of the mortgage rate is affected by the demand for residential space, which has increased due to increased inflation. “With inflation, people see that the funds that are in their hands can be saved in investing them in real estate, and mortgage lending provides such an opportunity – even with not very large funds, you can join this process and become the owner of your living space”, – noted the economist.
The deceleration of the rate of commissioning of finished housing on the market due to the shortage of labor and the rise in prices for building materials is also pushing the mortgage rate up, Belyaev said.
Earlier on the same day, Mutko said that if the Bank of Russia continues to raise the key rate, the mortgage rate on housing in new buildings could rise to an average of 10-10.2%, which, in turn, could lead to a decrease in the rate of issuing loans for the purchase of housing in the Russian Federation in 2022, reports RT. To date, rates are “somewhere around 9.2%,” Mutko said.
The head of DOM.RF also suggested that by the end of 2021, Russian banks will conclude 1.9 million mortgage agreements with borrowers, while in 2022 their total number will significantly decrease, according to the 360 TV channel. Thus, Mutko pointed out, housing prices in the Russian Federation in the coming year “will enter a normal cycle.”
On December 17, the Central Bank raised its key rate for the seventh time in a row – by 1 percentage point, to 8.5%, NSN reports. This is the highest since 2017.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
