Factors Affecting the Growth of the Russian Mortgage Market

This paper considers Russian mortgage market and the factors affecting its growth. The growth of the market is significant for banking and also has a social importance. The serious economic changes in 2014 have negatively affected the market indicators. In 2015 the government has implicated the subsidiary mortgage program for improving the situation and supporting the market. The program was supposed to be a growth factor for the market. On the base of existing Russian and foreign literature, the model was formed. It includes not only factors characterizing the credits (interest rate, period, prices), real estate market ( accessibility and new housing completion) and also micro and macro (unemployment and income) variables. The panel data from Russian regions in period from 2010 to 2016 was used. According to the results of research , in case of including the variable of government program, the factors of income, unemployment and accessibility of property remain significant. The program do not affects the volume of mortgage loans directly, but changes the effect of other factors such as income and unemployment. That is why it can be concluded that it stimulates the market growth.