The weighted average mortgage rate for new construction in Russia, as of October 13, exceeded 23% for the first time, according to operational data from the Unified Information System for Housing Construction (UISHS). They are brought to you by RBC.
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UISHS data is collected weekly and the report is based on the market offer rates of the top 20 banks in mortgage origination. It states that the average primary rate increased 0.75 percentage points (pp) in the week of October 7 to 13; now it stands at 23.08%. The percentage of secondary homes remained unchanged: 22.34%.
In both the primary and secondary markets, average mortgage rates are now at their highest, RBC notes.
In one week, two top 20 banks raised mortgage rates.
- In VTB, the price of main housing increased by 2.7 percentage points. and starts from 25.7% annually, for secondary housing the rate remained unchanged and starts from 23%.
- At MKB, mortgage prices increased by 2.55 percentage points. (primary housing) and 2.35% (secondary), up to 23% annually in both cases.
Weighted average rates for individual home construction were unchanged for the week. The average rate for the purchase of a finished house is 22.62% and for the construction of a house, 23.01%.
On October 10, the Bank of Russia lifted the limit on the total cost of credit (FLC) for mortgages until March 31, 2025. Credit institutions can now reflect in mortgage rates “the latest changes in the situation in the main segments of the financial market”, including those that have developed under the influence of decisions on the key rate.
According to data from September 2024, the share of mortgages in the primary real estate market reached 82% and only 18% of transactions in the primary market in Russia are carried out without attracting mortgage funds.
Author:
Nikolai Tikhonov
Source: RB
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