The Accounts Chamber said that preferential mortgages threaten a macroeconomic crisis

The report of the Accounts Chamber analyzing the implementation of the preferential mortgage program says that "the accelerated growth of mortgage lending may have negative consequences for macroeconomic stability".

"Higher leverage of the private sector increases the likelihood of crises. It intensifies post-crisis recessions in the economy and their duration", - the auditors note.

The document also states that, judging from the experience of other countries, that the initial effect of increasing the availability of mortgages subsequently “may lead to the opposite effect,” that is, to reduce the affordability of housing. For example, last year the growth of prices in the primary market was at the level of 12%.

The Accounts Chamber believes that the affordability of housing should be maintained not by preferential mortgages, but by a steady increase in the incomes of Russians, and the rate of commissioning of new residential facilities should correspond to the growth in demand for housing, otherwise, analysts emphasize, a price bubble will inevitably form.

The analysis recommends adjusting the program when extending the mortgage after July 1.

Note that housing prices in the country are growing extremely quickly. The Russian Federation is among the top ten states for this indicator, overtaking the UK, Norway and Canada.

Recall that Russian President Vladimir Putin, speaking about the reduction of the preferential mortgage program, indicated that it is impossible to curtail the program abruptly, but it must be extended until July 1, 2022. According to the opinion of economists, the new rules n okupki housing effectively "closed" two Russian capital for poor immigrants.

Meanwhile, with the increase of the key rate by the Central Bank, transformation of the state program of preferential mortgages for new buildings and an increase in the cost of funding for banks by the end of the year, rates on mortgage loans may rise to 9.5% per annum.

The credit boom in the mortgage market began in the country last year against the background of the introduction of preferential state programs. They will expire on July 1st. It is not yet known whether the state program of preferential mortgages will be extended. Earlier, the head of the Central Bank Elvira Nabiullina said that the Russian mortgage market is close to a bubble. She said that the state program for co-financing loans should be curtailed.