the Average rate on mortgages in Russia by the end of the year can fall below 7 percent. It is reported owned by Grigory Berezkin RBC, citing data from the Agency’s “National credit ratings” (NKR).

According to experts, the decline in mortgage rates to record levels will be possible thanks to a reduced program, the maximum rate which does not exceed 6.5 percent, and the reduction of the key rate of the Central Bank.

Analysts expect that by the end of 2020, the market rate for products will be below 7.5 percent, which, combined with low preferential rate under the state program and will reduce the average cost of mortgages to a level below 7 percent.

“Steady reduction is the main driver of the mortgage market, partially offsetting the reduction in real incomes and tightening of the risk policy of banks”, — said in the NKR.

Earlier it was reported that the average mortgage rate in Russia fell in may 2020 to a historic low of 7.4 percent. About a third of home loans last month were issued in the framework of the program of preferential mortgage at 6.5 percent. It was taken for the purchase of apartments in new buildings. The weighted average interest rate on mortgage loans in April fell by 0.3 percentage points to 8.32 percent per annum, which was also a record.