Reporter: Wang Jiafei

On May 2th, the People's Bank of China authorized the National Interbank Funding Center to announce that the loan market quoted interest rate (LPR) was 3.7% for one year and 4.45% for more than five years.

the 1-year LPR was the same as last month, and the LPR over 5 years decreased by 15 basis points compared with last month. Ren Zeping, an economist, said through social media: "We will cut interest rates on residents' real estate loans, mainly for more than five years, stabilize the housing market and strive for a soft landing".

"It will greatly boost market confidence"

On May 2, RealData market analyst Liu Lijie told reporters through WeChat: "The LPR over May 5 dropped by 15 basis points, which is the precise support of monetary policy to the real estate market and represents the substantive attitude and determination of decision makers to stabilize real estate, which will greatly boost market confidence."

In May, the interest rate of the mainstream first home loan and the second home loan in 13 key cities monitored by RealData was 4.91% and 5.32%, respectively, down 26 basis points and 13 basis points from last month, hitting a new low since 219; The average lending period this month is 29 days, which is the same as last month.

On the other hand, household loans decreased by 217 billion yuan in April, up by 745.3 billion yuan year-on-year, which was the second decrease after the decrease in February this year.

The downward adjustment of LPR will reduce the mortgage burden to a certain extent. For example, in RealData, if the commercial loan amount is 3 million yuan, the loan is 3 years, and the principal and interest repayment method is equal, the LPR will be reduced by 15 basis points, and the existing loan customers can save more than 3, yuan in mortgage every year; For new borrowers, considering that the lower limit of the first home loan interest rate can be reduced by 2 basis points on the basis of LPR, that is, the maximum interest rate can be reduced by 35 basis points compared with April, and the annual mortgage repayment amount can be saved by about 7,5 yuan.

Chen Wenjing, director of market research in the Index Division of the China Central Finger Research Institute, told reporters through WeChat: "This interest rate cut is the second after the LPR for more than 5 years was lowered by 5 basis points in January this year, and it is also the largest rate cut after the mortgage interest rate changed anchor LPR in 219."

in fact, the previous LPR level was already at a low level.

before this, the 1-year LPR and the LPR with a term of more than 5 years have a downward trend. Since April 22, the one-year LPR has been 3.85%, and the LPR over five years has been 4.65%. This interest rate level has been maintained until November 221.

in December, 221, the one-year LPR was lowered to 3.8%, and it remained at 4.65% after five years. In January 222, it will continue to be lowered to 1-year LPR of 3.7% and 5-year LPR of 4.6%.

Supporting policies are expected to be further optimized

On May 13th, the relevant person in charge of the People's Bank of China said in the People's Bank of official website that the next step of policy "will put steady growth in a more prominent position, strengthen the implementation of prudent monetary policy, give full play to the dual functions of monetary policy tools in aggregate and structure, speed up the implementation of policies and measures that have been introduced, actively plan incremental policy tools, and support economic operation in a reasonable range."

subsequently, on may 15th, the people's bank of China and the insurance regulatory commission of the bank of China informed that the lower limit of the interest rate of the first commercial personal housing loan was adjusted to be no less than the quoted interest rate in the loan market for the corresponding period minus 2 basis points, that is, the lowest interest rate of the first home loan was 4.4%.

since then, the interest rate of the first suite in many places has been lowered accordingly. According to the statistics of RealData, as of May 18th, the interest rate of the mainstream first home loan implemented by 11 cities including Tianjin, Qingdao, Jinan, Zhengzhou, Linyi and Mianyang has dropped to 4.4%, thus increasing the support for the first home loan. More than 6 of the 13 key cities have a second-home loan interest rate of 5.2%.

Liu Lijie said: "This time, the LPR for more than five years will be reduced to 4.45%, the lower limit of interest rate for the first home loan will be adjusted to 4.25%, and the lower limit of interest rate for the second home loan will be reduced to 5.5%. In the later period, banks will have more room to cut interest rates for both the first and second home loans to support housing demand, further promote market transaction growth and speed up market repair. Stable real estate will play a more active and important role in steady growth. "

Chen Wenjing believes that the supporting policies are expected to be further optimized in the future: "The supporting policies such as the standards for the identification of ordinary houses and the standards for the recognition of houses and loans in various places are expected to be further optimized. Previously, the adjustment of the lower limit of the interest rate of the first home mortgage was only for the purchase of ordinary residential property buyers. In the future, it is expected that more cities will adjust the identification standard of ordinary houses and optimize the supporting policies such as the recognition standard of housing loans. The superposition of multiple policies is conducive to amplifying the interest rate cut effect of the property market and promoting the release of rigid and improved housing demand. "

"On the whole, some cities are seriously affected by the epidemic, the pace of market recovery has been disrupted, and transactions in some cities have almost stopped. It will take some time for policies to improve until the market is effective. For hot cities with little impact of the epidemic, with the continuous efforts to optimize the credit environment and regulatory policies, the policy effect is expected to gradually emerge, and buyers' expectations and home ownership confidence are expected to gradually stabilize. At present, the market activity in Suzhou, Dongguan and other cities has increased. It is expected that the market in core cities will stabilize at the end of May and early June, but the epidemic situation in many places has repeatedly affected, and the demand in the second quarter continued to be sluggish, and the market only bottomed out in the middle of the year and slowly recovered in the second half. "