[Explanation] According to the central bank's website, the loan market quoted interest rate (LPR) on May 20, 2022 is: 1-year LPR is 3.7%, and LPR for more than 5 years is 4.45%.

Compared with the previous month, the one-year LPR remained unchanged, and the five-year LPR was adjusted from 4.6% in the previous month to 4.45%.

How does the LPR adjustment affect the real estate market?

In this regard, the reporter connected with relevant experts. Experts pointed out that the reduction of LPR for more than 5 years not only relieved the pressure on residential mortgage interest, but also eased the downward pressure on the market, and promoted the stable and healthy development of the real estate market.

  [Concurrent] Wei Hongxu, researcher of Anbang Think Tank

  Of course, the LPR adjustment is mainly aimed at our entire economy.

The entire economy has been greatly affected by the epidemic, and the long-term interest rate of LPR has been lowered. This can also be regarded as reducing financing costs, and then increasing the financing needs of some investments. Of course, this is indeed good news for the real estate market.

In April, especially for medium- and long-term loans, residents' loans, including real estate development loans, declined a lot. Therefore, adjusting the interest rate in this case will also reduce some costs. For this market (for) can Alleviate downward pressure on some markets.

  [Explanation] The LPR for a period of more than 5 years was adjusted from 4.6% last month to 4.45%. What specific impact does this have on people's purchase of houses?

According to experts, based on the loan amount of 1 million yuan and the repayment period of 30 years, the average monthly payment can be reduced by about 100 yuan, and the interest expense will be reduced by more than 30,000 yuan in the next 30 years.

  [Concurrent] Wei Hongxu, researcher of Anbang Think Tank

  Roughly speaking, if the principal of 1 million is loaned for 30 years, if calculated according to the original 4.6%, it is probably more than 800,000, 870,000 yuan and 860,000 yuan.

If the interest for 30 years is calculated, if the interest is reduced by such 15 basis points, the interest expense of a 30-year loan can be reduced by more than 30,000 yuan. In fact, if you calculate it, it is about 100 yuan per month. 100 bucks.

  [Explanation] Recently, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued the "Notice on Issues Concerning Adjusting Differential Housing Credit Policies". According to the notice, the lower limit of the interest rate of commercial personal housing loans for the first set of housing was adjusted to not be lower than the market quotation interest rate of the corresponding term loan minus 20 basis point.

Experts said that after the adjustment, according to the latest LPR calculation, the personal housing loan interest rate can be as low as 4.25% for the first home, which is 35 basis points lower than before.

  [Concurrent] Wei Hongxu, researcher of Anbang Think Tank

  On the basis of the LPR, the commercial bank can re-adjust itself, that is, to reduce its lower limit by 20 basis points, and the first suite will be reduced by 20 basis points.

Then if this adjustment is added, if the bank implements the lowest lower limit, the buyer of the first suite may be (reduced) by about 35 basis points, which is still a lot.

Then it will probably be calculated according to what I just said in 30 years, and it will probably save more than 70,000 yuan.

  [Explanation] After the LPR adjustment, the reporter called the customer service hotlines such as Agricultural Bank of China and Bank of Communications. The staff told the reporter that the adjustment notice has been received.

At the same time, the staff reminded users that the specific interest rate should be calculated according to local real estate policies and personal circumstances.

  [Concurrent] Agricultural Bank of China Customer Service

  The 5-year and more than 5-year loan interest rates announced by the People's Bank of China, the annualized benchmark interest rate is 4.45%.

It is based on the 4.45% interest rate, plus or minus points calculated according to your local real estate policy, including your personal circumstances.

  Reported by Chi Hanyu in Beijing

Responsible editor: [Wang Kai]