Last year, rates fell twice as fast: over 12 months by 2 percentage points. Natalya Garnelis / TASS

Since the beginning of the year, mortgages have become cheaper following the reduction of the Central Bank’s key rate, which by the end of March dropped by 0.5 percentage points (pp) to 7.25% per annum, and then froze. By the summer, banks had reduced loan rates for home purchases by approximately the same amount. According to the Rusipoteka analytical center, from January to May 2018, the average supply rate on both the primary and secondary markets decreased by 0.43 percentage points and by June reached 9.76 and 9.67% per annum, respectively. . Last year, rates fell twice as fast: over 12 months by 2 percentage points.

The fall in the average rate of loans issued was rapidly slowing down, according to Central Bank data. From January to April, the average rate of mortgage loans issued during the month dropped from 9.79 to 9.57% per annum, and in May - by only 0.01 percentage points to 9.56%.

But at the beginning of June, Sberbank unexpectedly reduced the base loan rates for new buildings by 0.3–0.5 percentage points to 7.1–9.5% per annum, depending on the category of clients, and by another 0.4 percentage points to 6.7–9.1% as part of the promotion until August 31. On the same day, Dom.rf reduced mortgage interest rates by 0.25–0.5 percentage points to 8.75% per annum for primary housing and 9% for finished housing. Analysts indicated then that Sberbank and Dom.rf are proactive, winning back a future reduction in the key rate, which will allow them to maintain and increase market shares.

How did competitors respond?

Most mortgage banks did not pursue Sberbank. “After he cut rates, a massive drop in rates in other banks, as happened before, was not observed,” says Natalya Abramova, director of the department for monitoring banking products at the marketing agency Marcs.

Over the past 30 days, of the 20 largest mortgage banks, only three have reduced rates. UniCredit Bank reduced interest on loans for primary housing by 0.5% per annum (minimum for non-salary clients - 9.5-9.75%), St. Petersburg - by 0.25-1 p.p. , but now they remain above 10%, with the exception of affiliate programs, where rates start at 9.25%. Bank Vozrozhdenie announced a mortgage promotion until the end of summer, for which the minimum rate decreased by 0.21 percentage points to 8.99%. And Absolut Bank even increased the loan rate for mortgage refinancing by 1 percentage point. Previous rates were too low, explained Managing Director for Retail Products Anton Pavlov.

According to Marcs, now loan rates for the purchase of housing under construction with a comprehensive insurance agreement in the largest mortgage banks remain at the level of 7–10.2% per annum, and for finished housing – 8.7–10.9%.

Forecast stable

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