Mortgage rates are growing, which might cause a decrease of mortgage demand by 20%. The weighted average rate for individuals increased by 9.52% in November 2018.
Experts expect that mortgage demand will see a drop in the spring. According to Sberbank chief analyst Mikhail Matovnikov, the increased rates will not affect the mortgage market in January and February because of the last year’s contracts. Another factor which will influence the mortgage demand is innovations on the new-home market. As a result, the mortgage market might cool off in the second half of 2019.
The weighed average rate for loans given in the 11 months of 2018 was 9.54%, as compared to 10.78% in 2017, Interfax news agency reports. In the second half of 2018, the Central Bank raised the key interest rate twice, which led to a growth of mortgage rates at Sberbank and VTB Bank.