Mortgages for inflation

To make mortgages available to the public, it is necessary to reduce inflation to 5% per year, according to President Vladimir Putin. If you believe the forecast of Economic Development, for a given reference point can come out in 2008-2009. Approximately the same time and calculates the Association of Russian Banks, predicting that after two or three years, interest rates on mortgage loans will be reduced to 7-8%. Experts doubt the reality of both forecasts. "If we can achieve the level of inflation at about 4-6%, the mortgage loans that can be taken for a long time under fairly modest salary, will be available to millions of people" - promised the president. According to forecasts by the MEDT, in the next year inflation will drop to 6.5-8% in 2008 - up to 4.5-6%, and by 2009mu - up to 4-5.5%. Banks also expect that by this time mortgage rates drop to 7-8%. However, experts doubt the implementation of such ambitious plans in the short term. Primarily, this is impossible because of high inflation. "Achieving the target of 5% is unlikely - the expert says the Center for Oksana Osipova .- The contribution to inflation is 3% of the monopolists, and it is unlikely to decrease 2% for the rest - it is very hard task for the government." "The real inflation rate for 2009 - 6-7%," - predicts Oksana Osipova. Even if we assume that in a few years, inflation is still reduced to 5%, the mortgage lending boom is unlikely to happen. The fact that housing going up by its own laws: the rise in prices is primarily a decline in supply, as well as the cost of materials that are virtually ignores Rosstat, counting inflation. "Inflation last year was 11%, while the price per square meter in Moscow in 2006 increased twice already," - said the head of a group of mortgage companies' Relight property "Svetlana Pugacheva. Some experts believe that this process will accelerate when Russia joins the WTO, since the arrival of foreign banks, having the ability to lend long term at low interest rates is inevitable. "Despite today's existing agreement with the U.S., three or four years after Russia's accession to the WTO, foreign banks still will be in our market, and then the Russian banks will be forced to lower rates on loans," - predicts the deputy director of LLC "Finexpertise" Aghvan Mikaelian . However, in this case, banks will raise rates more related to the issuance of mortgage loans. "Banks will be unprofitable to allocate funds and mortgages at 5-7% per annum. Rather, the banks will remain profitable through the introduction of fees, loan fees, examination requirements for the introduction of loan accounts, etc.," - says Vice-President of the European Trust Bank Vladimir Talavera.