CBR believes there are some signs of overheating in the mortgage market

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The CB RF sees signs of overheating in the mortgage market, will discuss with market participants the possibility of returning to pre-pandemic levels of mortgage allowances with a small down payment.
“We believe that there are some signs of overheating in this market. Demand for investment plan housing is growing fast enough, we see some decline in the quality of mortgage loans. 20%, we consider it necessary to return to pre-pandemic levels, we will discuss this with market participants in the near future, “- said the head of the CB Elvira Nabiullina during a press conference on Friday.

“Last year, in general, house prices rose much higher than inflation. And preliminary data for the first quarter show that price growth continues, here it is necessary to normalize the growth rate of mortgages and, above all, not to look at availability for a long time. people who are unable to service this debt. And, of course, banks must take into account all these risks associated with such loans, “she said.

The Central Bank is discussing with market participants proposals to limit mortgages issued at floating rates.

“I am convinced that we need regulation of floating rates, we need legislative regulation, so now the problem is that there is no such regulation. In principle, banks can quickly increase lending to individuals on floating rates, and this, at our expense. We are currently discussing our report, receiving comments and suggestions. Of course, the banks want less regulation here, we will discuss different options.

The Central Bank promises to end the discussion with market participants in the near future, based on which it will formulate its proposals.