1. Why is there such a round of “targeted interest rate cuts”?
The market effect of previous loan interest rate cuts fell short of expectations, and the market is still declining inertia. Take second-hand housing as an example. In August and September, the volume of second-hand housing transactions in the 50 key cities of Shell continued to decline month-on-month, and housing prices maintained an overall downward trend. The phased targeted interest rate cut for real estate at this time is a measure to implement the central government's “make full use of the policy toolbox to support rigid and improving housing needs”.
2. What are the characteristics of this round of targeted interest rate cuts?
The first is phased. The interest rate cut window is only until the end of the year, which can prevent the market from falling into endless wait-and-see and accelerate consumer decision-making.
Second, it is linked to housing prices. Only cities where housing prices have been falling continuously for 3 months can cut interest rates. Currently, these cities are Anqing, Baotou, Beihai, Changde, Dali, Dalian, Guiyang, Guilin, Harbin, Jining, Kunming, Lanzhou, Luzhou, Qinhuangdao, Quanzhou, Shijiazhuang, Tianjin, Wenzhou, Wuhan, Xiangyang, Yichang, Yueyang, and Zhanjiang. The dynamic interest rate adjustment mechanism linked to the increase in housing prices is conducive to stabilizing housing prices without major ups and downs.
3. How effective will this targeted interest rate cut have on the market?
(1) Eligible cities are expected to take steps to lower mortgage interest rates to the lowest level. Only a one-step approach, rather than a toothpaste decline, will have the greatest impact on the market. According to the survey, currently these cities are basically implementing the lower limit level of 4.1% (LPR-20), which will be lowered before the end of the year to ensure...