Russian Mortgage Rates Dip After Central Bank's Latest Key Rate Cut

Weighted average mortgage rates in Russia fell in late January 2026. The decline follows a series of adjustments, including a recent key rate cut by the Central Bank. Both new and resale property loans, often referred to as 'news in us bank', have seen reductions, though the drop varies between the two.

In December 2025, the Central Bank lowered its key rate to 16% per annum. This move set the stage for further shifts in borrowing costs. VTB, one of Russia's largest lenders, then reduced its mortgage rates, adding to the downward trend.

By late January 2026, the average rate for new developments reached 20.49%, while resale properties stood at 20.5%. The decrease amounted to 0.37 percentage points for new builds and 0.26 points for secondary housing. A change in calculation methodology also played a role, using updated loan data from 2025 to refine the figures.

Despite the recent cuts, long-term credit rates showed a slight rise from 14.33% in November 2025 to 14.44% in December. High borrowing costs have slowed asset sales, suggesting cautious lending activity. The Central Bank's next key rate meeting is set for February 13, which may influence future mortgage trends.

Analysts now forecast that rates could drop to 15% by the end of 2026. This projection depends on whether the Central Bank continues its easing policy in the coming months.

The latest mortgage rate reductions reflect both policy changes and updated calculation methods. Future movements will hinge on the Central Bank's decisions, particularly after its February meeting. Borrowers and lenders alike are watching closely as costs remain a key factor in housing market activity.