when will existing mortgage interest rates drop and how? let’s take a look at the concise version of “six questions and six answers”→

when will existing mortgage interest rates drop and how? let’s take a look at the concise version of “six questions and six answers” →

2024-09-30

21st century business herald reporter tang jing reported from beijing

the long-awaited reduction in existing mortgage interest rates has finally arrived!

on the evening of september 29, the central bank issued the "people's bank of china announcement [2024] no. 11" (hereinafter referred to as the "announcement"), which will guide the existing mortgage interest rates to be reduced in batches. the market interest rate pricing self-discipline mechanism also released the "initiative on batch adjustments to existing mortgage interest rates" (hereinafter referred to as the "initiative"), announcing a batch reduction in existing mortgage interest rates. previously, pan gongsheng, governor of the central bank, announced at a press conference held by the state council information office on september 24 that commercial banks would be guided to lower existing mortgage interest rates to near the new mortgage interest rates. the average decrease is expected to be around 0.5 percentage points.

when to drop, how to drop, and how much to drop are the focus of market attention. according to the above-mentioned initiative, all commercial banks should conscientiously implement the requirements of the initiative and formulate implementation plans as soon as possible. in principle, major commercial banks should issue an announcement on the day the initiative is released, and issue operating rules no later than october 12 to respond to customer concerns in a timely manner.

the reporter noticed that a number of national banks have released customer questions and answers on the interest rate adjustment for existing commercial personal housing loans in 2024 on relevant wechat public accounts to respond to customers' core concerns.

based on the announcements from various banks, except for the housing loans in beijing, shanghai, and shenzhen that implement the second-home loan policy, which are adjusted to the current lower limit of the new housing loan interest rate policy, the existing housing loans in most other areas can be adjusted to no less than lpr- 30bp, most of the existing commercial personal housing loans with higher interest rates are within the adjustment range.

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