Russians were told about the reduction in mortgage rates after the key reduction

After the reduction of the key interest rate by the Central Bank of the Russian Federation (CBR) to 18%, there has been a noticeable decrease in mortgage rates, which stimulates the real estate market. Experts from the financial marketplace "Compare" told Izvestia about this on August 15.

"This year, for the first time in our history, we saw the key rate of the Central Bank of the Russian Federation at 21%, which has been with us for quite a long period. The Bank of Russia has been reducing the rate for the last two meetings, and I want to believe that this is a trend that will continue to be the case. However, there are a number of factors that directly affect the regulator's decision," commented Ekaterina Stashkova, Ipoteka Product Manager at Compare.

She clarified that, first of all, the current inflation and inflation expectations of the population, geopolitical uncertainty, and the slowdown in the economy affect the situation. If there are no new shocks, it is likely that the key rate will reach 15% by the end of the year. The medium–term forecast for the key rate assumes values of 7.5-8.5% in 2027, so there is a chance to see mortgage rates of about 10%, the expert added.

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It is specified that about half of the largest banks reacted to the reduction in the key rate in terms of consumer loans. The average decrease for those who revised the terms was 0.6 percentage points. As of August 8, the spread of rate changes ranged from 1 to 2 percentage points.

"Unlike the mortgage market, where there was a more pronounced and widespread reaction, the consumer lending market reacts to changes in the key interest rate more cautiously and heterogeneously. This is due to the fact that financial institutions need to service a large number of deposits that were opened at higher interest rates when the key interest rate was higher. In order to avoid an imbalance between their income and expenses, banks are forced to take a cautious approach to lowering interest rates," concluded Igor Korchagin, head of Credit Rating at Compare.

Analysts of the Yandex Real Estate service said on August 6 that in July, prices on the secondary housing market in million-plus cities stagnated amid rising demand. At the same time, the volume of supply in the market of these cities decreased slightly over the month — by 1%. It is noted that the price dynamics close to stagnation (fluctuations from -0.5% to +0.5%) in the secondary market was recorded in seven of the 16 Russian megacities.

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