Mortgage Market Vital for Boosting Consumer Demand

The development of mortgage market is vital, in view of the decline in the purchasing power of Iranians, an economic analyst said.
“All economists believe that the interest rate must be lowered. It won’t be possible to grant affordable home loans at reasonable rates with the interest rate at 20-odd percent," says Hossein Abdoh-Tabrizi, a former member of Iranian Securities and Exchange Commission, Hibna reported.  
“There is no choice but to develop mortgage lending opportunities at moderate rates now that home prices have hit their record high, which are about 3-4 times higher than what it was two years ago. The government needs to offer subsidies from the difference between the interest rate and the interest rate in the mortgage market. Financial constraints facing the government at present can’t be denied, but it can identify resources from which to pay this subsidy.”