The Central Bank saw "a vicious circle" in the housing market
Analysts of the Bank said that mortgage availability reduces the availability of housing for the Russians in General, as low interest rates on housing loans increase the demand for apartments.
The Central Bank said that the experience of many countries, the initial effect of increasing the availability of mortgages after the interest rate reduction can lead to the opposite effect: to reduce the availability of home purchase.
"The main factor in maintaining the affordability of housing should be high and sustained growth of incomes", – stated in the document.
Also, the report notes that boosted the growth of mortgage lending may reduce macroeconomic stability. In addition, the accelerated growth of this segment of crediting increases the risk of crisis in the housing market, and reinforces its negative macroeconomic consequences.
"To improve affordability of housing can contribute to reducing the cost of construction – for example, by reducing the obligations of developers for construction of social infrastructure. This will require an increase in the budget for the construction of such infrastructure", – concluded the experts.