Why doesn't LPR be adjusted all at once? Does fine-tuning once a year stimulate the housing market?
The central bank issued an important announcement: the credit interest rate has entered the three-character era, and home buyers are finally looking forward to it!
Some banks may offer discounts on top of the central bank's reference rate, with interest rates as low as 375%, and the interest rate for a second home is only 41%。
Since 20 February, the 5-year RLP has been cut by 25 basis points, which has certainly given a boost to the housing market.
With interest rates lowering, will the real estate market usher in a new spring?
I guess, this kind"Cardiac stimulants"It remains to be seen how powerful it is, because the magnitude of the downward adjustment is small after all.
Looking back on the development of real estate in the West in the past 200 years, there is an indisputable fact: as long as the interest rate is attractive enough, there is no market demand that cannot be stimulated!
The 25 basis point cut in the 5-year long-term interest rate is undoubtedly a sign of strong official support for the housing market.
But why not adjust the LPR all at once? Will a small annual reduction really encourage people to buy a home?
If interest rates in developed countries are reduced to about 2%, a loan of 1 million can pay hundreds of thousands less in interest; For most homebuyers, mortgage pressure will ease, and demand for home purchases is bound to continue to grow.
In recent years, due to the overall economic situation, many people are not optimistic about their future income, preferring to keep their money in the bank rather than buy a property.
At this stage, you shouldn't put the loan interest rate first when buying a house, because you don't want to be a high house price"Pick-up man"。
Except for those who urgently need to buy a house due to marriage, schooling, etc., most people continue to maintain a wait-and-see attitude, not only to see how interest rates fall, but also to see the trend of housing prices.
But why not adjust the LPR all at once, but down a little bit every year?
This is mainly related to China's economic situation and monetary policy.
First of all, the gradual reduction of loan interest rates can reduce the financing costs of enterprises, stimulate market vitality, and promote economic development.
Second, LPR adjustments must take into account a range of factors, including inflation, foreign exchange holdings, capital flows, and more.
A one-time adjustment will cause economic shocks and excessive fluctuations, which is not conducive to the stable development of the economy.
For now, there are other factors to consider to determine whether rent, spread, and commission adjustments will incentivize people to buy homes. For example, changes in housing prices, personal finances, housing demand, market expectations, and other factors.
In short, after reading this LPR adjustment, there is no doubt that this is also a timely rain for the real estate market!
If you're looking to buy a home in a Tier 1 or Tier 2 city, then it's time to consider moving.
Unlike third- and fourth-tier cities, the real estate market in these places is relatively balanced in terms of supply and demand.
The headwind is that house prices are still in a strong downward trend, and market expectations are low, resulting in both volume and price declines.
Now, with the adjustment of the RLP, home prices in these areas are expected to reach the lowest levels, which is a rare opportunity for home buyers.