China News Agency, Beijing, July 20 (Reporter Pang Wuji) The Chinese loan market quotation rate (LPR) has not been adjusted in July.

　　On the 20th, the People's Bank of China authorized the National Interbank Funding Center to announce the latest LPR: 1-year LPR was 3.7%, and LPR over 5 years was 4.45%, both unchanged from the previous month.

　　Regarding the reason why the LPR has not been adjusted, Liu Lijie, a market analyst at the Shell Research Institute, analyzed that the July Medium-Term Lending Facility (MLF) equivalent parity sequel means that the current market liquidity is reasonably sufficient.

Zou Lan, director of the Monetary Policy Department of the Central Bank, said at a recent press conference held by the State Council Information Office that the current liquidity remains at a relatively reasonable and sufficient level.

The MLF interest rate remains unchanged, which means that the pricing basis of the LPR for the month has not changed.

　　From the perspective of the external environment, Liu Lijie said that the U.S. CPI reached a new high in June, the expectation of interest rate hikes has increased, and the world has entered a cycle of tightening monetary policy, which will reduce the room for easing China's monetary policy.

The LPR may remain unchanged in the short term under the consideration of "internal and external balance".

　　However, housing credit conditions eased further during the month.

According to the data of the Shell Research Institute, in July 2022, the mainstream first-home loan interest rate in the 103 key cities under monitoring is 4.35%, and the second-home loan interest rate is 5.07%, which are respectively 7 and 2 basis points lower than the previous month; the average lending cycle in July 25 days, 4 days shorter than the previous month.

　　Liu Lijie pointed out that the interest rates of mainstream housing loans in major cities in China have hit a new low since 2019. The interest rates of first- and second-home mortgages have dropped by 139 and 93 basis points respectively from the high point in September last year; the rate of bank lending has also accelerated.

　　The Shell Research Institute predicts that the mortgage interest rate will enter the bottoming stage in the third quarter.

In July, the decline in the interest rates of mainstream first- and second-home mortgages in 103 cities narrowed significantly compared with the monthly decline in the second quarter.

In addition, as of now, there are 74 of the 103 cities where the first and second home loan interest rates have fallen to the lower limit of 4.25% for the first home and 5.05% for the second home.

The industry predicts that there is still room for a decline in mortgage interest rates in the short term, but the space is narrowed. It is expected that the overall mortgage interest rate level will gradually approach the lower limit in the third quarter.

　　The loose housing credit environment continues to benefit the recovery of the real estate market.

According to the monitoring of the Shell Research Institute, 49 of the 103 cities, including Wuhan, Nanchang, Changchun, Harbin and other provincial capitals, implement a minimum down payment of 20% for the first home commercial loan.

Low interest rates and low down payment substantially reduce the cost of buying a house and help to release the demand for buying a house.

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