Banks recorded an increase in demand for mortgages amid an increase in the key rate
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Russian banks recorded an increase in demand for mortgages amid a rise in the key rate. As reported “RBC-Real Estate” in the press services of Sberbank (MOEX: SBER) and VTB (MOEX: VTBR), over the past two weeks, 10-13% more applications for housing loans have been submitted than in the two weeks before. The Bank of Russia announced an increase in the key rate on October 27.
Sberbank, citing Domklik analysts, said that the number of applications for mortgage loans has increased sharply over the past two weeks. The average increase in applications was 10%. Moreover, relative to the same periods of the last two years, the increase is about 70% by 2022, and 60% by 2021.
VTB also reported an increase in demand for mortgage loans. Thus, in the period from October 15 to October 29, before the key rate was raised and against the backdrop of its subsequent growth, the credit institution received over 51 thousand mortgage applications. Compared to the figure recorded two weeks earlier, the number of applications increased by 13%. According to VTB forecast, in 2023 the volume of mortgage issuance may reach a record and exceed 6.9 trillion rubles.
Bank of Russia raised key rate from 13% to 15% on October 27. Real estate market players predicted that in connection with the regulator’s decision, mortgage rates could rise to 17%. Against this background, the total volume of mortgages in the country will return to the level of 100 thousand loans per month. In August, according to experts, the figure was 216 thousand.
Read more about what awaits the real estate market with an increase in the basic indicator in the Kommersant FM article. “The mortgage is equal to the key rate”.
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