The lower the mortgage interest rate, the less loans will be repaid, which greatly reduces the pressure on these buyers. This will greatly benefit the demand of just-needed buyers and lower the threshold for buying houses. In addition to lowering the loan interest rate of the first suite, many places have reduced the down payment ratio of the first suite from the previous three floors to 20%, loosened the provident fund, and some have also issued subsidies for their own purchases. In order to improve everyone's enthusiasm for buying houses, the government has also racked its brains.
At present, the sales data of the property market is relatively dull, and the housing turnover is still declining. Many citizens are full of pessimism about the property market, especially the economic development has been blocked, and the COVID-19 outbreak has repeatedly caused the current property market to be even more depressed. Although the domestic mortgage interest rate has dropped a lot, it is still at a high level compared with other countries. If the property market remains depressed, the government will continue to lower the mortgage interest rate.
Falling interest rates are good news for buyers. The real estate market is closely related to economic development. The domestic economic development is hindered, many enterprises are facing bankruptcy, and many citizens' income is declining, so that they can't even maintain their daily life, let alone buy a house. The most important thing for the government now is to lower house prices, which can also reduce the pressure on these property buyers. As long as buyers benefit, they can increase their willingness to buy houses and let the property market gradually pick up.