At the end of 5 consecutive months of "standing still", the loan market ** interest rate (LPR) has fallen!
On February 20, the People's Bank of China authorized the National Interbank Lending Center to announce that the one-year LPR was 345%, unchanged; LPR for more than 5 years is 395%, down 25 basis points from the previous value
Since the LPR reform in 2019, the LPR has become the pricing benchmark for commercial bank loans in China. Among them, LPR with a maturity of more than 5 years is the pricing "anchor" of the vast majority of personal housing loan interest rates. The reduction of LPR for more than 5 years means that when the "repricing date" agreed in the mortgage contract arrives, the individual's mortgage interest rate and corresponding monthly payment will fall accordingly
Overall,The downward revision was expected, but the magnitude exceeded market expectations, and it was the largest single decline in the history of LPR with a maturity of more than 5 years.
It should be noted thatAfter the LPR adjustment, the user's mortgage interest rate is not adjusted immediately。Generally speaking, the repricing date of the mortgage interest rate is January 1 of each year or the disbursement date of the loan (different bank policies are different, and users can choose when signing the loan agreement). Therefore, for existing mortgages, a new interest rate will be obtained according to the latest LPR** interest rate plus the basis points agreed in the contract on the day of the interest rate repricing dateExecuted in the next cycle
It is worth noting that, according to the data monitored by the Shell Research Institute, the average interest rate of the first mainstream mortgage in Baicheng in January 2024 is 384%, and the average interest rate of the second set of mainstream mortgages is 441%。
*丨Comprehensive Xinhua News Agency, Shanghai ** News, National Business Daily.
Editor丨Jia Yanhu.