The housing affordability index is at its all-time high, the Central Bank says in a market review.
The housing affordability index indicates how many square meters a Russian can buy with a mortgage, provided that they will spend no more than half of their monthly income to service the debt. In summer 2019, they could afford 35.7 sq. m., a nearly 30% growth compared with 22.7 sq. m. in 2015, the worst year for the Russian mortgage market, the financial regulator reports in its financial markets review.
The surge is explained, to a greater extent (66%), by banks lowering interest rates and extending loan terms, and to a lesser extent (34%) by the adjustment in housing prices and growth of salaries.
The Central Bank also notes an increase in the quality of loans: the number of loans with payments overdue over 90 days is also at its historical low of 1.4%.