Russian Sberbank raises mortgage rate to almost 30%
Pravda Ukraine
Sberbank, Russia’s largest mortgage lender, has raised mortgage rates for the second time in a month, to more than 28%.
Source: The Moscow Times
Details: From 15 November, the rates increased by 3.5 percentage points, resulting in new indicators: the minimum rate in the secondary market is now 28.1%, while in the primary market it is 28.4%. Overall, Sberbank mortgage rates have risen by 7.4% since the beginning of October.
The Russian market has not experienced such high rates since the early 2000s, when inflation in Russia was double-digit and the Central Bank’s key rate approached 20%. The basis for such a decision in Sberbank is the general increase in the regulator’s key interest rates.
Even with current interest rates, over 40% of all mortgages granted remain on the market, despite a 20% decline in total loan volume.
According to the Central Bank of the Russian Federation, the issuance of market mortgages fell by 14.3% in September to RUB 103.7 billion (approx. US$1 billion), accounting for more than 70% of all mortgages that month.
Beginning in July, adjustments to preferential lending schemes reduced the volume of mortgage issuance by about half.
Background: The Central Bank of Russia decided to hike the key rate by two percentage points immediately, to a record 21% per year.
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