The volume of mortgages issued in April decreased by 70%

The Central Bank published data on mortgages for April. It follows from them that last month 49,372 mortgage loans were issued in Russia, which is 74% less than in April 2021, and 69% compared to March of the current. The volume of mortgages issued in April decreased by 70% compared to April 2021 and by 69% compared to the previous month.

“We did not observe such a collapse either during the covid crisis or during the crisis of 2014-2015,” notes the authoritative economic Telegram channel MMI.

The weighted average mortgage rate in rubles fell to 7.64% in April from 8.05% in March. This suggests that “market-based lending has ceased altogether, and people have only taken out loans under the government's preferential programs,” notes MMI.

Last week, the Central Bank lowered the key rate, and mortgage rates followed it down. Therefore, in the current month there is a possibility that the issuance of mortgage loans on market terms will become more active.