The country raises interest rates on banks, first-tier cities lower prices, and second-tier cities have also lowered the interest rate on first-tier mortgages. Starting today, the interest rate on first-tier mortgages has dropped to 3.9%-3.8% respectively.
After the interest rate on first-tier mortgages has dropped below 4%, the lower limit on first-tier mortgages will be lowered. Today, the reporter learned from several real estate agencies and three loan personnel from local banks that the interest rate of first-home mortgages has been lowered since today (October 14), from the previous 4.1% to 3.9% and 3.8% respectively.
first-home mortgage interest rate continued to be lowered based on the previous low of 4.1%, which also implemented the policy orientation of the central bank before the National Day. According to market institutions, among the 70 large and medium-sized cities included in the Bureau of Statistics survey, a total of several cities meet the requirements for phased relaxation of the lower limit on interest rates for first-home mortgages.
Will the remaining second-tier cities that meet the adjustment conditions follow up and how will the mortgage policy trends in other first- and second-tier cities attract market attention? It is not ruled out that more cities that meet the conditions may intensively lower the interest rate of first-home mortgages in the future. In addition, the reduction in the interest rate of the first home loan will open up interest rate space in some cities. We look forward to the subsequent adjustment of the rules for housing recognition in first- and second-tier cities and the introduction of policies such as special loans to alleviate real estate companies' difficulties.
Relatively speaking, mortgage interest rates in first-tier cities are still relatively strong, especially in Beijing and Shanghai. In the 2022 mortgage interest rate decline, it basically only followed the fluctuation of the decline in LPR for more than 5 years. In contrast, most of the other second- and third-tier key cities have been maintained at the national lower limit or the 5-year LPR level after several declines.
This reduction in the interest rate of the first home loan will open up the interest rate space in some cities and reduce the cost of buying a house for residents with urgent needs. In addition, the decline in mortgage interest rates can indeed boost some market demand, which has strong signal significance. However, due to the deeper market adjustments in this round, the more complex environment, and the stronger wait-and-see sentiment of home buyers, the demand-side stabilization still requires the joint efforts of policies. We look forward to the subsequent adjustment of housing and loan recognition rules in first- and second-tier cities, and the introduction of policies such as special loans to alleviate real estate companies' difficulties.
Looking forward to the future , before 2010, banks will generally place 20-20% off the basis of benchmark interest rate . The actual execution interest rate is only about 3.5%. According to this discount, the mortgage loan interest rate should theoretically be significantly lower than the current mortgage loan execution interest rate.
