Recently, Rong360 Big Data Research Institute of 35 key cities across the country mortgage rate monitoring data show that in January 2020, the national average interest rate for first-suite loans and second-suite loans fell for two consecutive months, respectively, 5.51% and 5.82%, respectively, a decline of 1 BP and 2 BP, respectively, year-on-year.

It is worth mentioning that the interest rates of first-suite loans in first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen were also all Down, especially in Shanghai, the average interest rate for first-suite loans down 5BP, the first mortgage rate as low as 4.82%, a two-and-a-half-year record low, but also almost the country's lowest first-suite interest rates in the city, while the highest first-suite mortgage rate for the city of Nanning, Guangxi, as high as 6.27%.

As an example: in Shanghai and Nanning to buy a set of 5 million worth of houses, after 30% down payment, after a loan of 3.5 million, the choice of equal principal and interest mortgage 20 years, in Nanning City and Shanghai City to pay the cost of interest for 2.65 million yuan and 1.96 million yuan, respectively, Nanning to buy a house to pay 690,000 yuan of interest higher than Shanghai.

Yan Yuejin, research director of the E-House Research Institute Think Tank Center, believes that the mortgage rate cuts can continue to stimulate demand for homebuyers and reduce the pressure on homebuyers, coupled with the central bank's previous two consecutive days of reverse repurchase of 1.7 trillion yuan, the market environment will be further loosened, which is conducive to stabilizing market expectations.

Average interest rate down for 2 months

2020 mortgage rates start the year lower.

Rong360|JanPu Technology Big Data Research Institute's monitoring data on mortgage rates in 35 key cities across the country shows that in January 2020 (the data collection period was December 20, 2019-January 19, 2020), the national average interest rate for first-suite loans was 5.51%, down 1 BP from a year earlier, 71 BP for the 5-year LPR plus point; the average second-suite loan rate was 5.82%, down 2BP from a year earlier, adding 102BP to the 5-year LPR.

In fact, in December 2019, as the 5-year LPR, released on November 20, 2019, which serves as a reference for the interest rate of newly-issued mortgages, saw its first downward adjustment, it drove a slight decrease in the nation's mortgage rate after six months of consecutive increases.

In the month of December 2019, the national average interest rate for first-suite loans was 5.52%, down 1 BP from a year earlier, while the average interest rate for second-suite loans was 5.84%, down 1 BP from a year earlier, which means the national average interest rates for both first-suite and second-suite loans saw a two-consecutive drop.

Yan Yuejin, research director of the E-House Research Institute Think Tank Center, told a reporter from brokerage house China that there are many reasons for the decline in mortgage rates, on the one hand, the market liquidity is relatively loose, including the central bank's series of policies to reduce the quota, which makes the commercial banks can be a larger scale of the loan quota, the interest rate fell; on the other hand, there is a relationship with the impact of the market as a whole, including the lowering of the LPR, making the cost of capital has also declined, the mortgage rate then fell. The mortgage rates have been lowered accordingly.

Shanghai mortgage rates hit a two-and-a-half-year low

Nationally, there are differences in mortgage rates between cities, but the overall tone is mainly downward, especially in the first-tier cities of Shanghai's first set of mortgage rates hit a two-and-a-half-year low.

Monitoring data show that in January 2020, 20 cities first-suite mortgage rates were adjusted downward from the previous year, of which 7 cities had a decline of more than 5 BP, and Harbin had a decline of 23 BP from the previous year; the level of first-suite mortgage rates in 11 cities rose, and Wuxi had the biggest increase of 5 BP.

In terms of first-tier cities, in January 2020, the first-suite mortgage rates in Beijiang, Shenyang, Guangzhou and Shanghai were at a two-and-a-half-year low. month, the first-tier cities of Beijing, Guangzhou and Shenzhen all lowered their first-suite lending rates. Among them, Beijing lowered 1BP, Guangzhou lowered 4BP, and the average interest rate for first-suite loans in Shanghai and Shenzhen were both lowered by 5BP, and the interest rate for first-suite loans in Shanghai was as low as 4.82% after the downward adjustment, which was a record low in the past two and a half years.

Meanwhile, in the second-tier cities, in January 2020, there are five cities in the first suite loan interest rate down more than 5 BP, Harbin first suite loan interest rate down to 5.21%, down as much as 23 BP from the ring; interest rate rise in the city of the magnitude of the change are relatively small, of which Wuxi rose the largest, 5 BP.

"Relatively speaking, some cities such as Wuxi, Nanning, Suzhou, Zhengzhou lending rates are still relatively high, closely related to the local real estate policy of strict regulation."

What's more noteworthy is the ranking of mortgage rates in 41 monitored key cities across the country, in which Shanghai's first-suite mortgage rate hit a two-and-a-half-year low of 4.82 percent, while the highest first-suite mortgage rate in the country is actually Nanning, Guangxi, at 6.27 percent, which is 145 BP higher than the first-suite interest rate in Shanghai.

This means that, in both Shanghai and Nanning, the first-suite rate for a set of A house worth 5 million, after 30% down payment, after a loan of 3.5 million, choose equal principal and interest mortgage 20 years, in Nanning and Shanghai paid interest costs of 2.65 million yuan and 1.96 million yuan, which means that Nanning to buy a house to pay 690,000 yuan higher interest than Shanghai.

February 3, the central bank issued a notice, in order to hedge the open market reverse repurchase expiry and the financial market funds concentrated in the expiry of factors such as the maintenance of the epidemic prevention and control of the special period of the banking system liquidity is reasonably abundant, the interest rate bidding carried out 900 billion yuan of the 7-day reverse repurchase and 300 billion yuan of 14-day reverse repurchase operations, and the winning rate compared with the last time were reduced by 10

"The central bank's liquidity injection is more than expected, and the probability is that the level of the MLF interest rate will also be lowered in the later stage, which will bring about a downward movement of the LPR," Li Wanfu, a researcher at the Rong360 Big Data Research Institute, believes that, as a result, a combination of city-specific policies, the expectation of a downward movement of the LPR, and the bank's sufficient credit line at the beginning of the year and other factors, the mortgage interest rate in the short term will be lower than that of the previous year. Therefore, the combination of city-specific policies and LPR downward expectations, as well as the bank's sufficient credit line at the beginning of the year and other factors, the level of mortgage interest rates in the short term is likely to maintain a stable and slow downward trend.