China News Service, Beijing, October 20th (Reporter Pang Wuji) China's loan market quoted interest rate (LPR) has remained unchanged for 7 consecutive months.
On the 20th, the People's Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR is 3.85%, and the 5-year or more LPR is 4.65%.
So far, LPR has remained at the same level for 7 months.
Xu Xiaole, chief market analyst at the Shell Research Institute, believes that the domestic economy continued to recover in the third quarter. GDP in the quarter increased by 4.9% year-on-year, the growth rate expanded, and the economic growth in the first three quarters turned from negative to positive.
There is no need for further easing of aggregate monetary policy, and LPR continues to remain unchanged.
Kang Yong, chief economist of KPMG China, told a reporter from China News Agency a few days ago that China’s economic growth in the fourth quarter is strong and it is expected that without large-scale stimulus policies, the Chinese economy will continue to maintain a good recovery trend.
With reference to how the interest rate of housing loans for LPR over 5 years changes?
Experts believe that under the influence of the long-term unchanged LPR and the tightening of bank liquidity margins towards the end of the year, mortgage interest rates have bottomed out.
The main 36 cities monitored by the Shell Research Institute show that in October, the first home interest rate was 5.21%, which was unchanged from the low level since 2019, and the second home interest rate was 5.52%, up 1 basis point from the previous month.
The bank lending cycle has been extended month-on-month for two consecutive months.
The average mortgage loan cycle for the 36 cities in October was 42 days, which was 3 days longer than the previous month, and was the highest since June this year.
Xu Xiaole believes that short-term mortgage interest rates continue to remain low and stable.
The current Chinese economy still has the problem of insufficient structural repair. For example, the completion of manufacturing investment is still less than last year, so there is no condition for tightening the aggregate monetary policy. The monetary policy will pay more attention to structural easing and precise drip irrigation.
He predicts that the short-term LPR will likely remain stable in the future, and mortgage interest rates will continue to stabilize at a low level or rise slightly.
In addition, according to the monitoring data of the Rong360 Big Data Research Institute on the mortgage interest rates of 674 bank branches in 41 key cities across the country, October 2020 (the data monitoring period is from September 20, 2020 to October 18, 2020), the first The average interest rate for home loans was 5.24%, and the average interest rate for second home loans was 5.55%, both unchanged from the previous month.
This also ended the previous trend of "nine consecutive declines" in mortgage interest rates.