Lower Limit Of The First-Home Loan Interest Rate In More Than 40 Cities Has Entered The "Three Eras"

Although the LPR has remained unchanged for 8 consecutive months, under the dynamic adjustment mechanism of the first-home loan interest rate policy, more and more cities have lowered the first-home loan rate Lending rates.

According to CIH data, more than 40 cities have turned down the mortgage rates to below 4%. At the same time, real estate prices in many cities continued to pick up, causing market concerns about the adjustment of mortgage interest rates. Chen Wenjing, director of market research at China Finger Research Institute, said that at the end of March, various regions have entered a new evaluation period, and the next evaluation period will start at the end of June. At that time, each region will decide whether to adjust the mortgage interest rate based on the price changes of new houses from March to May 2023. The lower limit, individual cities where housing prices have continued to rise may have housing loan interest rates raised again. However, in the short term, the recovery of market sales is not sustainable enough, and the prices of second-hand housing in many cities are still on a downward path, which may further affect the expectations of new housing prices. In the short term, the expectation of an increase in housing loan interest rates in various cities is not strong.