Low level of financial literacy of people and can easily be manipulated. For example, to show such pictures:
Indeed, why in Japan and in Europe, near-zero mortgage rates, then how do we "tear up" at 9%? Hurt?
mortgage Rate is INCLUDED in the value of the property. This is part of it! When you cite the example of Europe and Japan, we need to remember, and how many have this same property? And found that the prices there are exorbitant. From change composed the sum does not change.
Imagine that tomorrow the rate on your mortgage in Russia will become 1%. Model the situation. What is the result?
People rush, economists say, as "hungry dogs", to buy everything. Demand will exceed supply. Prices of flats and houses will start to rise, but rate of 1% will not stop this growth. It's almost a freebie! Take now — pay sometime later. Prices will continue to rise... They can increase 100% and more.
In the end, the market settled when the value of the property if the rate mortgage 1% equal to its value at the current rate (9%). Figuratively speaking, if the buyer mortgage paying 100% of the apartments for 30 years, at low rate of 1% the apartment itself would cost 2 times more expensive.
Or as in the parable of the monkeys, when they rebelled, they will give 3 bananas in the morning and 4 in the evening, the Governor said that it would comply with the requirements of apes and then give them 4 bananas in the morning and 3 in the evening, and the monkeys are happy!
With mortgage rates the situation is similar. If you want 1%, it is ready, prices will increase in 2 times. But 1% as in the civilized world!yesterday I saw a crayfish and five rubles. But the big, but 5... Really big... but five rubles... but it is very large... and today was three, but small, but three...
the country's Economy revolves around the refinancing rate established by the Central Bank (for us it is easier to see % on the Deposit). This rate depends on mortgage, value of real estate, rental, exchange!!! Everything is interconnected.
If the reality of the current economy to begin issuing loans under 1%, what will people do? We have in the country is very smart, savvy people. They instinctively feel the vulnerability of the financial system. Give people low-interest loans for the development of production, and they will drive the money into the currency speculation! Buy dollars and euros and will wait until the rate goes up, hit your jackpot! And no production development. Speculation!
the case of Turkey clearly confirms this. They handed out cheap loans to stimulate the economy, and as a result the local currency has fallen...
the Problem, oddly enough, rests on the honesty and reliability of people. If they really would take the money for production and development, the state would have them, and under 1% were given loans right now. But not all people are trustworthy, hackers financial systems in income, and high loan — it is also protection from speculators.
We live in a world controlled by monetary supercomputer. He calculates everything and everyone (!!!) One of the input parameters for the calculations of this computer — the refinancing rate. From it and depend on real estate prices.
it is Necessary to rejoice that in Russia is possible(!!!) to earn and to buy an apartment. In other countries, despite the low interest rates on mortgages, buying property is a debt for life.
Appreciate what you have!