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- Russia is shutting down a mortgage subsidy program that fueled a property boom.
- It’s a sign Russia is trying to cool off its real estate sector, as well as its overheating economy.
- Russia’s economy has been heating up for a while, bucking dire predictions about the effect of sanctions.
Russia is shuttering a major housing subsidy program as policymakers try to contain a property boom that has helped overheat the economy in recent years, Bloomberg reported Tuesday.
Russia’s government has spent around half a trillion rubles since 2020 to fund a program offering mortgages at rates as low as 8%. That’s much lower than the market rate for mortgages in Russia, with banks offering mortgages at rates ranging between 17% and 20%, according to government data cited by Bloomberg.
But that program…
