China News Service, Beijing, February 23 (Reporter Pang Wuji) The unexpected reduction in the loan prime rate (LPR) led to the largest monthly decline in China's home loan interest rates in hundreds of cities in five years in February.
Data map: Nanjing Chengdong real estate.
(Drone photo) Photo by China News Service reporter Yang Bo
Data released by the Shell Research Institute on the 23rd showed that driven by the decline in LPR over 5 years, the average first- and second-home mortgage interest rates in 100 cities in China dropped by 25 basis points in February 2024 from the previous month, marking the largest single-month decline since 2019. , the lending speed further accelerated.
LPR data released on February 20 showed that the LPR for mortgage interest rates of more than 5 years was 3.95%, a decrease of 25 basis points from the previous month.
After the data was released, banks responded quickly and lowered mortgage interest rates.
Monitoring by the Shell Research Institute shows that in February 2024, the average first-home mainstream mortgage interest rate in 100 cities was 3.59%, and the average second-home mainstream mortgage interest rate was 4.16%, both 25 basis points lower than the previous month.
In February, the mainstream first- and second-home mortgage interest rates in 100 cities dropped by 45 and 75 basis points respectively compared with the same period in 2023.
In that month, the average lending cycle of banks was 18 days, 3 days shorter than the previous month, which was the fastest lending rate since 2019.
From the perspective of each tier city, in February 2024, the interest rates for first- and second-home loans in first-tier cities dropped to 3.88% and 4.29%; the interest rates for first- and second-home loans in second-tier cities dropped to 3.61% and 4.17%; House loan interest rates dropped to 3.57% and 4.15%.
As of February 22, except for the first home loan interest rate in the six districts of Beijing, which is 4.05%, the first home loan interest rate in other cities (urban areas) among the 100 cities has dropped to less than 4%; the second home loan interest rate has dropped in 90% of the 100 cities. to the lower limit level of 4.15%.
Shell Research Institute pointed out that after this interest rate cut, from the supply side, the financing costs of real estate companies have been reduced, which is conducive to the investment, construction and delivery of new housing projects, and to meet the purchasing needs of the improved customer base for new houses; from the demand side, the current low Under the credit environment of down payment and low interest rates, the threshold for residents to purchase houses has been lowered and the monthly payment pressure has been alleviated, which will continue to promote the release of rigid and improved housing demand, and is conducive to the smooth restoration of market transactions.
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