The logic of mortgage interest rate restraining house price is generally as follows: when mortgage interest rate rises, the demand for house purchase is generally suppressed by increasing the cost of house purchase, and once the demand for house purchase weakens, the driving force for house price increase will disappear.
If the demand is excessively weakened, the house price will not hold up and then fall back.
Moreover, the two major needs of buyers, just need and investment, and even real estate speculators will be affected by interest rate hikes.
First of all, for those who just need it, the rise in mortgage interest rate will greatly increase their cost of buying a house, to be precise, the cost of repaying the loan. Those who just need it will postpone the plan to buy a house, and then hope to start at the bottom of the cycle, such as falling house prices and lowering interest rates.
And just need our hesitation, it is bound to make the market lose a lot of mice, and then accelerate the arrival of falling house prices;
Followed by real estate speculators. The increase in mortgage interest rates will also increase their start-up costs. On the other hand, there are fewer recipients in the market. So this concern will also reduce their chances of starting.
Moreover, when the general interest rate rises, it will be accompanied by strict qualification examination for purchasing houses.
Therefore, the superposition of the two factors has greatly increased the "buying" of the market. At the same time, because of the lag of the market cycle, the "selling" in the market has increased significantly.
When the two factors are superimposed, the possibility of falling house prices will be great.
Therefore, the interest rate of housing loans in Xiamen will rise, leading to a corresponding decline in housing prices.
(The above answers were published on 20 18-04-24. Please refer to the actual situation for the current purchase policy. )
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