OREANDA-NEWS. According to the statistical data  on the Bank of Russia website, the amount of funds extended to mortgage borrowers increased by 13% in August 2016 and reached record highs from March – 125 billion rubles.

The banks extended residential mortgage loans in the amount of 899.5 billion rubles for the first eight months of this year, a 37.8% increase against the previous year.

The last summer month demonstrated further growth of demand for mortgage caused by an active participation by the banks in the government support programme for the residential mortgage loans market and continuing improvement of price terms.

Weighted average interest rate for residential mortgage loans in rubles was down for the second consecutive month and reached 12.66% in August against 12.82% in July. The interest rate for mortgage loans extended on pledge of receivables under equity construction agreements was even more markedly down to 10.87% in August from 11.84% in July.