According to CCTV Finance and Economics, the reporter learned from a number of banksStarting next Monday, January 1, 2024, interest rates will be lowered by 10 basis points for most existing mortgages
According to the Beijing News Shell Finance, the interest rate of existing mortgages that choose January 1 as the "repricing date" and are priced before June 20 this year will be cut by 10 basis points again. This does not conflict with the reduction of interest rates on existing housing that began at the end of September this year. Different from the increase in the interest rate of existing loans in September, although the LPR is renewed once a month, for loan customers, the interest rate can only be adjusted once a year on the "repricing date" agreed in the contract, and the latest LPR announced before the repricing date shall prevail. It is understood that the repricing date for most loan customers is set to January 1 each year.
Most existing mortgages will be lowered from January 1 next year.
Banks: No action is required from the customer.
According to CCTV News, bankers, the current personal mortgage interest rate in the market is basically formed by the increase or subtraction of the loan market's ** interest rate, which means that the level of the mortgage interest rate is affected by the rise and fall of the LPR.
The loan market** interest rate LPR is published monthly, while the mortgage rate is subject to adjustment once a year. Lenders can choose to adjust on January 1 of each year, or they can choose to adjust on the loan disbursement date.
In January of each year, the bank will adjust the interest rate of personal housing loans for the new year according to the increase and decrease of the LPR of the previous year.
Chen Jing, general manager of the Consumer Finance Department of the Beijing Branch of the Bank of Communications, said that in June 2023, the LPR was adjusted, and the LPR with a maturity of more than 5 years was reduced from 43% to 42%, a reduction of 10 basis points, and the corresponding customer lending rate will also be reduced by 10 basis points. The repricing date for the vast majority of customers is January 1st, so the vast majority of customers will also adjust from January 1st, 2024, without any action from the customer.
According to the banker's estimates, take the first home loan in Beijing, the loan amount is 1 million yuan, the term is 20 years, and the personal housing loan with equal principal and interest repayment is taken as an example. On January 1 next year, the loan rate will be increased from 43% down to 42%, the monthly payment will drop from 6,219 yuan to 6,166 yuan, a decrease of 53 yuan. If the loan term is calculated for 20 years, the total interest expense will be reduced by 12,801 yuan.
In late September, according to the notice of the People's Bank of China and the State Administration of Financial Regulation, the interest rate on more than 22 trillion yuan of existing housing loans was lowered, with an average reduction of 073 percentage points, benefiting 1500 million people, reducing borrowers' interest expenses by 160 billion to 170 billion yuan per year.
Expert: Mortgage rates for next year.
or will continue to decline.
Recently, major state-owned banks such as the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the Construction Bank of China, and the Bank of Communications, as well as 12 joint-stock banks such as China CITIC Bank and China Merchants Bank, have officially announced the reduction of deposit interest rates.
According to Yang Haiping, a researcher at the Research Institute of the University of Finance and Economics and general manager of the Research and Development Department of the Bank of Inner Mongolia, the background of the interest rate cut is that the LPR was not moved in December, and the expected RRR cut was not delivered. "However, according to the judgment of the market, it is still necessary to cut the reserve requirement ratio and interest rates in the near future, and there is room for it. ”
Yang Haiping said that the bank interest rate cut is unexpected and reasonable, "commercial banks still want to maintain a reasonable net interest margin, can only reduce the deposit interest rate first." He judged, "This round of downward adjustment actually makes room for the LPR downward adjustment." ”
Central bank**.
According to the "Daily Economic News", Wen Bin, chief economist of Minsheng Bank, pointed out that in 2024, the central bank will most likely still guide the LPR to decline moderately, thereby promoting the steady decline in financing costs and activating the demand for production and consumer credit, but the further downward space for LPR and new loan interest rates will be narrowed. In order to achieve "flexibility, moderation, precision and effectiveness", the structure is also expected to play a greater role, and the need for further control of the cost of the debt side is still strong.
To make comprehensive arrangements and arrangements for economic work in 2024, this year's ** economic work conference requires that we should continue to "increase macroeconomic regulation and control" and "strengthen macroeconomic policy counter-cyclical and cross-cyclical adjustment". This means that the policy of stabilizing growth will remain continuous. For the monetary policy in 2024, it is required that "a prudent monetary policy should be flexible, moderate, precise and effective".
Wang Qing, chief macro analyst of Oriental Jincheng, pointed out that under the prospect that the price level will still run at a low level, there is room for the central bank to cut interest rates and reserve requirements in 2024 with a view to boosting domestic demand and supporting the resolution of local debt risks. In 2024, the U.S. and European central banks will turn to interest rate cuts, providing more space for China's central bank to "focus on me" and flexibly implement monetary policy.
Wang Qing said that based on the macroeconomic trend, the MLF operating interest rate may be lowered once in the first half of 2024, and the LPR** of the two maturities will follow up at that time, thereby "promoting a steady and moderate decline in the comprehensive financing cost of the society". At the same time, we believe that even if the MLF interest rate remains unchanged in 2024 and the LPR** with a maturity of more than 5 years is not adjusted, with a view to promoting the real estate industry to achieve a soft landing as soon as possible, the policy side will also guide the residential mortgage interest rate to fall sharply by comprehensively lowering the lower limit of the mortgage interest rate.
*: CCTV Finance, CCTV News, Beijing News Shell Finance, **Every Economic Network, Daily Economic News, etc.
Editor: Zhang Lei.
Editor-in-charge: Ying Kan.
Review: Fang Yuming.