Mutko predicted a decrease in mortgage rates by the end of the year

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Vitaly Mutko, CEO of DOM.RF, on August 6, at a meeting with Russian President Vladimir Putin, said that by the end of the year the mortgage rate would drop to 7.5%.

“I think that at the end of the year we will have an average of about 7.5% in general, taking into account preferential mortgages, and already market somewhere 8.4%,” the Kremlin press service quotes him.

Mutko noted that at the moment about 90% of the mortgage lending market falls on a preferential program with a 6.5% rate. At the end of the year, taking into account all the state support measures, about 1.2-1.3 million mortgage loans will be issued.

Earlier on Thursday, the head of the State Duma Committee on the Financial Market Anatoly Aksakov said that the deputies would insist on extending the program of concessional mortgage loans at 6.5%, which will end on November 1.

The program of preferential mortgages at 6.5% was commissioned by President Vladimir Putin at the end of April. It involves the support of citizens who want to improve their living conditions. It also aims to help the construction industry, which is faced with a falling demand for housing and an outflow of citizens’ money due to the downturn in the economy and the spread of the coronavirus.

According to the program, Russians can get a loan to buy housing in a new building worth up to 6 million rubles in all Russian regions until November 2020. At the same time, in Moscow and St. Petersburg, the maximum threshold for the value of the target living space is 12 million rubles, writes The loan is issued at a rate of 6.5% and is valid for up to 30 years.

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