, June 6 (Zhongxin Finance Gong Hongyu) The central bank authorized the National Interbank Lending Center to announce that on the 20th, the 20-year loan market quotation rate (LPR) and LPR for more than 1 years were lowered by 5 basis points to 10.3% and 55.4%, both ending nine consecutive months of "standing still".

As the LPR is lowered, so will the interest rate on bank mortgages. Taking "100 million loan principal, 30-year term, equal principal and interest housing loan" as an example, the monthly repayment is expected to be about 58 yuan less, and the total repayment in 30 years is about 2,1 yuan.

Infographic: RMB. Photo by Liu Yanghe

Downward revision is "expected"

This month, the central bank has "cut interest rates" one after another, especially cutting the medium-term lending facility (MLF) by 15 basis points on the 10th. Considering that MLF is the pricing basis of LPR, the market generally believes that this month's LPR downward revision is an expected "sure event".

Dong Ximiao, chief researcher of CMF, told Zhongxin Finance that the reduction of the central bank's policy interest rate, coupled with the fact that the deposit interest rate has been lowered for many rounds since September 2022 and the cost of bank liabilities has decreased, led to the reduction of LPR this month.

Yan Yuejin, research director of the E-House Research Institute, also believes that the cut is in line with expectations, and there has been more news about the central bank's frequent interest rate cuts recently, which also shows that the central bank is guiding interest rates down from all levels. Therefore, in the case of interest rate cuts by instruments such as MLF, the LPR reduction is generally in line with expectations.

30 years of mortgage repayment is less than <>,<> yuan

With the reduction of LPR, the interest rate of existing mortgages and new mortgages is also expected to be reduced.

Yan Yuejin said that it is expected that major banks will cut mortgage interest rates in the past two weeks, that is, it will generally fall by 10 basis points, which also means that a new round of loose mortgage policies will also begin.

If calculated by commercial loan amount of 100 million yuan, loan for 30 years, and equal principal and interest repayment, LPR decreased by 10 basis points, monthly payment decreased by about 58 yuan, and cumulative monthly payment decreased by 30,2 yuan for 1 years.

In addition, Yan Yuejin mentioned that the further reduction of the first home loan after the interest rate cut has a positive effect on the subscription of the first home. It is expected that the standards for identifying the first home in various places will be further reduced, which will have a positive effect on the first home loan interest rate for buyers to better enjoy.

Data map: A building under construction in Zengcheng District, Guangzhou. Photo by Fan Shaopeng

Experts: Send positive signals

The executive meeting of the State Council held on the 16th focused on four aspects: increasing the intensity of macro-policy regulation, focusing on expanding effective demand, strengthening and optimizing the real economy, and preventing and resolving risks in key areas. The meeting pointed out that in view of the changes in the economic situation, we must take more effective measures to enhance the momentum of development, optimize the economic structure, and promote the sustained recovery of the economy.

Yan Yuejin believes that this downward adjustment positively responds to the spirit of the executive meeting of the State Council, is the first card of the package of booster plans, and has the significance of a wind vane.

In addition, Yan Yuejin mentioned that this reduction is of substantial significance to the cost reduction of medium and long-term loans, which means that the follow-up will continue to make efforts in reducing costs in the real economy, which is also the policy effect to be focused on at present.

"Next, we must speed up the optimization of differentiated housing credit policies, implement policies according to cities and districts, cancel unreasonable purchase restrictions and loan restrictions, appropriately reduce the interest rate of existing housing loans, and better meet the needs of residents for improved housing purchases." Dong Ximiao said. (End)