Mortgage debt of Russians exceeded 15 trillion rubles in May

The debt of Russians on mortgage housing loans (HML) in May amounted to 15.1 trillion rubles. This should from the review of the mortgage lending market of the Bank of Russia.

The Central Bank notes that the growth rate of debt accelerated compared to April to 2.3%.

In May, banks issued 157,800 mortgage loans totaling RUB 580.5 billion. Compared to April, the result increased by 2.9% and 2.5%, respectively. The Central Bank emphasized that, compared with the results of May 2022, when there was a decline in activity in the lending market amid uncertainty, the indicator increased more than four times. The average loan size in May 2023 is fixed at RUB 3.7 million.

The growth rate of the HML portfolio compared to the previous year amounted to 21.4%. In the structure of the consumer portfolio, the share of mortgage loans did not change and amounted to 52.2%.

The weighted average rate on mortgage loans in May amounted to 8.4%, showing a decrease of 0.12 percentage points. The Central Bank explained this dynamics by a decrease in the cost of lending in the finished housing market and an increase in the share of loans for the purchase of housing under construction with a traditionally low rate.

The Central Bank noted changes in the structure of the leading regions in terms of mortgage lending. The top three included Moscow (69.4 billion rubles), Moscow (43.6 billion rubles) and Tyumen (29 billion rubles) regions.

June 14 Deputy Chairman of the Board VTB Anatoly Pechatnikov predictedthat in 2023 banks can issue mortgage loans worth more than 6 trillion rubles, which is 10% higher than the record results of 2021. According to him, in 2022 the mortgage market faced serious shocks, but the housing lending segment is quite recovers quickly.