China News Agency, Beijing, January 31 (Reporter Pang Wuji) Recently, many places in China have intensively lowered the interest rates on first-home loans.
According to incomplete statistics from the China Finger Research Institute, in the first month of 2023, nearly 20 cities in China will adjust the lower limit of interest rates, including second-tier cities such as Zhengzhou, Tianjin, Fuzhou, Shenyang, and Xiamen.
In addition, Zhaoqing, Zhanjiang, Yunfu, Huizhou, Shaoguan, Jiangmen, etc. have gradually canceled the lower limit of the first-home loan interest rate.
Statistics from the Zhuge Housing Search Data Research Center also show that as of January 30, 30 cities in China have lowered the lower limit of first-home loan interest rates, the lowest of which fell to 3.7%.
Mortgage interest rates in many places ushered in "three eras".
In 2022, China's LPR (quoted loan market interest rate) with a period of more than 5 years will be reduced by 35 basis points in total. In addition to the official phased relaxation of the lower limit of first-home loan interest rates in some cities last year, the first-home loan interest rates in many places will continue to decline.
Statistics from the Shell Research Institute show that in January 2023, the average first-home loan interest rate in major cities in China is 4.10%, and the average second-home loan interest rate is 4.91%, down 146 basis points and 93 basis points year-on-year respectively.
At present, the lower limit of the national first-home loan interest rate is 4.1%.
According to the dynamic adjustment mechanism of the first housing loan interest rate policy announced by the government on January 5, the cities where the sales price of new commercial housing have declined for three consecutive months month-on-month and year-on-year can maintain, lower or cancel the local first housing loan interest rate policy in stages lower limit.
Chen Wenjing, director of market research at the Index Department of China Central Index Research Institute, pointed out that the decline in mortgage interest rates will help reduce loan interest payments, reduce loan repayment pressure, and reduce housing loan costs. The continued relaxation of policies is expected to promote home buyers who are in the wait-and-see stage to enter the market and boost the market Activity.
In the short term, cities that comply with the first set of dynamic adjustment mechanisms for housing loan interest rate policies are expected to follow up and adjust, and the lower limit of interest rates is expected to drop below 4%. Most of these cities are ordinary second-tier and third-tier and fourth-tier cities.
However, the new housing market in first-tier and core second-tier cities is more resilient, housing prices are generally running smoothly, and mortgage interest rates may be adjusted based on additional points.
As the implementation of policies at both ends of the supply and demand continues to accelerate, Chen Wenjing believes that the demand for housing in first- and second-tier cities is strong, and it is expected to usher in market recovery first, and the property market "Little Spring" may appear in a few cities.