The impact of LPR (loan market quotation rate) on housing loans is mainly reflected in the housing loan interest rate. After the housing loan interest rate is linked to the LPR, it changes from the original fixed interest rate to a floating interest rate. Changes in LPR will cause Fluctuations in mortgage interest rates have a greater impact on lenders.

LPR will be recalculated every month. If it increases or decreases, then in the next month, the mortgage interest rate will also be adjusted accordingly. For lenders, Naturally, I would rather see the LPR lowered.

However, although the LPR value is recalculated every month, it does not mean that it will change every month. Most of the time, the LPR remains stable, so the lender’s actual loan interest rate It won't be adjusted every month.

In addition, for borrowers who have already signed a mortgage contract, even if the LPR drops, it may not immediately reduce the monthly repayment, because for those who have already signed a loan interest rate Generally speaking, there is a cycle of changes in mortgage interest rates. The shortest time of this cycle is one year. The mortgage interest rates will not change until the time is reached.

The exact start time of the LPR interest rate is August. The LPR interest rate is based on the same quotation from 18 banks, removes the highest value and the lowest value, and then averages the latest 18 The LPR quoting banks are: ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Postal Savings Bank of China, Bank of Communications, China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, Minsheng Bank, Bank of Nanjing, Taizhou Bank, Shanghai Rural Commercial Bank, Guangdong Shunde Rural Commercial Bank, WeChat Public Bank, MYbank, Citibank (China) and Standard Chartered Bank (China). The LPR interest rate is generally announced by the central bank on the 20th of each month.

Take a loan of 1 million yuan as an example! In the same period last year, the LPR interest rate increased by 59 basis points from 4.6. The final 5-year execution interest rate was 5.19. According to the 30-year equal principal and interest repayment method, the monthly repayment is 5,485 yuan, with a total interest of 974,500 Yuan, the current 5-year interest rate is 4.45, which is still 20 basis points lower. If the 5-year interest rate is 4.25, the monthly repayment is 4,919, with a total interest of 770,000. Calculated, the monthly repayment of the same 1 million is 566 yuan less, and the total interest saving is 204,500 yuan! Therefore, it is indeed more suitable for current loan home buyers.

And the current bank interest rate is 20 basis points lower than LPR, which means that no matter how LPR changes in the future, the lower interest rate will be implemented.

What is the relationship between mortgage interest rate and LPR?

First of all, let’s talk about the relationship between mortgage interest rate and LPR. The relationship between them can be expressed by an equation: Mortgage interest rate =lpr points; that is to say, there is a direct linear relationship between the mortgage interest rate and lpr. Once the "points" are determined, they will not change throughout the mortgage cycle. When the mortgage interest rate is a floating interest rate, the LPR can be updated according to the latest value, and the change cycle is generally one year. However, if a fixed interest rate is adopted, the LPR will always remain unchanged during the entire mortgage cycle, and the LPR data value when the mortgage contract is signed is used.

The lpr update cycle is one month, and it will be updated once every month. Updated once a month does not mean that it changes every month. The lpr in January is lowered, and the 1-year lpr is adjusted downward from December's 3.8 was revised down to 3.7, a decrease of 0.1 percentage point. The lpr for more than 5 years was lowered to 4.6 from 4.65 in December, a decrease of 0.05 percentage points. The LPR with a maturity of 5 years or more has not changed since April. Therefore, although the LPR is nominally updated every month, the real status often remains unchanged for a long time, and more often over a longer period of time. The segment maintains a trend, an upward or downward trend.