China News Service, Beijing, May 20 (Reporter Pang Wuji) The market quoted interest rate (LPR) for loans with a maturity of more than 5 years, which is a reference for China's mortgage interest rates, has been lowered.

  On the 20th, the People's Bank of China authorized the National Interbank Funding Center to announce the latest LPR. The one-year LPR was 3.7%, the same as the previous month; the 5-year LPR was 4.45%, down 15 basis points from the previous month.

Since the LPR reform in August 2019, the LPR with a period of more than 5 years has been lowered five times, from 4.85% to 4.45%.

The picture shows citizens passing the People's Bank of China in Beijing.

Photo by China News Agency reporter Jiang Qiming

  Experts pointed out that, unlike corporate loans, personal housing loans have a long term, and currently more than 99% of personal housing loan interest rates are linked to LPRs with a term of more than 5 years.

The decline of LPR with a period of more than 5 years will help support rigid and improving housing demand, reduce the pressure on residential mortgage interest, stabilize investment, consumption and macroeconomic fundamentals, and promote the stable and healthy development of the real estate market.

  Recently, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued the "Notice on Issues Concerning Adjustment of Differential Housing Credit Policies", which adjusted the lower limit of the interest rate of commercial personal housing loans for the first set of housing newly issued at the national level from LPR to LPR-20BP, and the lower limit of the interest rate of the second set of housing loans. Keep LPR+60BP.

After this adjustment, according to the latest LPR calculation announced on the 20th, the personal housing loan interest rate can be as low as 4.25% for the first home and 5.05% for the second home.

  Wen Bin, chief researcher of China Minsheng Bank, pointed out that in April, housing loans to Chinese residents decreased by 60.5 billion yuan (RMB, the same below), a decrease of 402.2 billion yuan year-on-year, reflecting the decline in residents' willingness to buy houses.

The decline in LPR over a 5-year period will generally reduce the cost of home purchases.

The interest rate of newly issued housing loans in some cities will be significantly lowered, which will help to reasonably meet the housing needs of residents.

For existing housing loans, the decline in LPR will reduce the cost of existing housing loans through loan re-pricing, which will play a bailout role and reduce the debt burden of residents, thereby saving more funds for consumption.

  Experts calculate that if the stock loan is estimated based on the loan amount of 500,000 yuan, the term of 30 years, and the equal principal and interest repayment, the average monthly monthly payment expenditure can be reduced by about 45 yuan, and the interest expense will be reduced by about 16,000 yuan in the next 30 years.

  Wang Xiaoqiang, chief analyst of Zhuge Housing Data Research Center, pointed out that after the central bank announced the differentiated credit policies in various places on May 15, the minimum mortgage interest rate for the first home in about 20 cities has dropped to 4.4%, including Shenzhen, Guangzhou, Tianjin, Suzhou, etc. , Jinan, Qingdao, Chongqing, etc.

After the interest rate cut by 15 basis points this time, there is room for further reductions in the minimum interest rates for first home buyers in these cities.