Kremlin snuff box, 10/28/24
https://t.me/s/kremlin_secrets
What’s going on with the mortgage? The Central Bank made an honest admission, and the government urges not to panic and earn more
Lately there have been a lot of rumors that problems with mortgages in Russia will seriously worsen, even to the point of their complete disappearance. As a result, purchasing housing will become unaffordable for most of the country’s residents. We found out what was really going on.
“Mortgages, of course, will not disappear anywhere. But, based on the situation in the country, which was reflected, in particular, in an increase in the key rate , mortgage programs will be inaccessible to the majority of the population. This is the reality,” a senior source at the Central Bank told us.
In his opinion, such problems will last at least until the end of 2025. “And then everything depends on many factors - from sanctions to how the military action will proceed and whether there will be a new wave of mobilization in the country,” he believes.
At the same time, a government source urged citizens not to panic because of the current situation. “Yes, there are problems with the mortgage. But this is not a tragedy. Our people at the front die every day. This is a tragedy. And the mortgage is nonsense!”, he said emotionally.
“Besides, the mortgage hasn’t disappeared. Earn more and you will have everything!”, our interlocutor added.
“Lately there have been a lot of rumors that problems with mortgages in Russia will seriously worsen, even to the point of their complete disappearance. As a result, purchasing housing will become unaffordable for most of the country’s residents.”
Then the prices collapse, and many more people with existing mortgages will be under water (owing more than the properties are worth). Lots of existing Russian mortgages are highly overleveraged, where making the monthly payment exceeds 80% of the income of the home owner. It is worse than the creditworthiness problem that led to our 2008 housing crash.
Putin used Chinese style Government subsidized mortgages, to pump up GDP numbers over the last couple of years (greatly inflating new home prices), but now is backing off, because the costs have skyrocketed with the interest rates.