prices create risks for everyone — for the financial system, the construction industry, the state, and buyers. Statistics are distorted, and it is unclear what the real price level is. Because of this, economic what is ping and how does it affect speed agents can make wrong decisions. Developers, seeing the rise in prices, can increase the launch of new projects, although in fact this growth is illusory. Borrowers overpay for housing and can suffer losses if the housing is sold at a real market price. And for banks, such mortgages lead to the accumulation of potential risks.
In the long term, such distortions may lead
to a serious slowdown in the construction industry – it may “hit a wall”, which is not good at all. Developers have lived for a year on the “steroids” of near-zero mortgages, but what should be done next to stimulate demand? Introduce negative rates or extend mortgages for 60 years? Reduce the area of apartments how much do lead generation companies cost? even further? I would like all market participants to plan for the future – not for a year, but for a longer term.
Another point is the significant burden
on the budget. Historically, mortgages were repaid in 7-8 years, while near-zero mortgages can be repaid in 20-30. This means that the budget will subsidize loans for all these 20-30 years . Although in general, there is a question about such combined programs – it is not clear why additionally subsidize a mortgage issued america email at a rate significantly below the market rate and without a state subsidy.
