Amount of mortgage loans extended increases in August amid lower rates

The weighted average interest rate on ruble-denominated housing mortgage loans (HMLs) issued in July 2019 continued its decline observed since May 2019 dropping to 9.91% from 10.55% in April (in July, the interest rate was 10.24%).

No foreign currency-denominated HMLs were extended in August 2019.

In general, positive trends continued to prevail in the HML market in August. Banks issued 107,000 HMLs at a total amount of 236 billion rubles, which is 6.3% more than in July.

As of 1 September 2019, the value of outstanding HMLs stood at 7.1 trillion rubles, having increased by 107 billion rubles during the month. At the same time, the share of overdue loans remains at 1.0%.