In July 2020, the average mortgage rate in Russia decreased from 7.51 to 7.28% per annum. The value became the lowest ever observed. This is evidenced by data from the Central Bank, published on Friday, August 28.

According to the regulator's calculations, over the past month, Russians have issued more than 146 thousand housing loans for a total amount of over 362 billion rubles. Against this background, July 2020 entered the top three record months with the maximum mortgage loans in the entire history of the Russian market.

“In July, more people were able to get loans at a preferential rate of 6.5% per annum. It took them time to collect the required package of documents and receive confirmation from banks. In June, not everyone managed to go through this stage, so the average rate in the country increased slightly compared to the May figure, and in July it resumed the decline, "Konstantin Aprelev, vice president of the Russian Guild of Realtors, told RT.

As a reminder, the authorities launched a preferential mortgage program back in April at a rate of 6.5% per annum. Until November 1, 2020, citizens can apply for loans with an appropriate rate for the purchase of apartments worth up to 12 million rubles in Moscow and St. Petersburg agglomerations, as well as up to 6 million rubles in other regions of the country.

In total, Russian banks have already issued more than 130 thousand loans at a reduced rate for the amount of almost 362 billion rubles. In total, Russians have submitted about 500 thousand applications for a preferential mortgage. This was announced on August 24 by the general director of DOM.RF, Vitaly Mutko.

As Russian Prime Minister Mikhail Mishustin said earlier, since its launch "the program has become one of the most successful tools to support both real estate buyers and the construction industry during the fight against coronavirus." At the same time, the authorities may extend the program in autumn.

“Preferential mortgages are in demand by the population. In the first half of the year, a third of all housing loans in Russia were issued at a low interest rate, "Natalya Milchakova, deputy head of the Alpari information and analytical center, told RT.

In addition, experts explain the decrease in the average mortgage rate in Russia by increased competition between banks. According to Konstantin Aprelev, in order to attract customers, credit organizations reduce the difference between the rate at which they borrow funds from the Central Bank and the final rate on a housing loan.

In many ways, the further situation on the market will depend on the actions of the Central Bank. Russian banks are closely monitoring changes in the key rate of the regulator and, on the basis of decisions taken by the Central Bank, independently determine the level of long-term lending rates, including mortgage rates.

In July, the Central Bank lowered its key rate to the minimum for the entire post-Soviet period (down to 4.25% per annum). At the same time, in the near future, the regulator may continue to reduce the indicator. The head of the Central Bank Elvira Nabiullina did not rule out such a scenario earlier.

“We will assess the nature of changes in monetary conditions, the nature of recovery processes in the economy, price dynamics and, taking this into account, assess the feasibility of reducing the key rate at the next meetings. In general, we believe that there may still be room for easing monetary policy, ”Nabiullina stressed at a press conference on July 24.

According to Natalia Milchakova, the regulator may reduce the key rate at the next meeting on September 18 - to 4% per annum. As a result, according to the expert, by the end of 2020, the average interest on mortgage loans in Russia may drop to 6.8-6.9% per annum.

At the same time, experts do not expect an increase in the cost of housing in Russia in the near future. According to Konstantin Aprelev, prices on the market are mainly stabilizing, and the growth in real estate values ​​is observed only in certain projects that are optimal in terms of price-quality ratio.

Moreover, as the vice president of the International Academy of Mortgage and Real Estate, Irina Radchenko, told RT, at the moment, buyers have almost satisfied the demand for real estate after the withdrawal of the self-isolation regime. As a result, the value of real estate in the country may start to decline in the coming months.

“By 2021, developers will reduce property prices by 6-8%. In the future, the average cost of apartments will depend mainly on one factor - income and purchasing power of the population, ”the expert concluded.