Mortgage rates fell to two-year low

Average weighted rate on mortgage housing loans in rubles issued in February 2016 to individuals in Russia amounted to 12.1%, down approximately to the level of the beginning of 2014. This was reported Wednesday on the website of the Bank of Russia.

Rates of primary market of mortgage housing crediting in January—February this year showed a positive trend, notes the regulator. The February level of mortgage rates approximately equal to that of December 2013 and January 2014, when rates were at the level of 11,93 and 12.12 per cent respectively.

During this period, banks issued to borrowers 117.3 thousand housing mortgage credits in rubles in the total amount of 204,2 billion rubles, which is 54.6 billion rubles (36,5%) is greater than the value of the same period of 2015.

In foreign currency were issued six mortgage loans, compared with 14 in January—February last year. Estimates funding was reduced from 0.5 billion and $ 0.2 billion in ruble equivalent and constituted 0.1% of the total granted funds.

Most mortgage loans in the first two months of this year was taken by the borrowers from the Moscow region and St. Petersburg. Among the banks leading position maintained credit organizations with state participation, the share of which in total volume of provided loans amounted to 58,3%, said the Central Bank.

In early February, during his speech at the Congress of “United Russia” Prime Minister Dmitry Medvedev proposed to extend the program of subsidizing interest rates on mortgage loans, though earlier in the Ministry of Finance said that in 2016, the subsidies won’t last, and eventually the decision was made in favor of the continuation of the programme. Allocated to it the limit of funds amounted to 16.5 billion rubles.

Later in the state Duma started thinking about compensation to the families part of the mortgage debt due to the state budget under condition of having children. The main condition is the birth of children.