Mainland buyers are still waiting to cut interest rates

In order to stabilize the economy and increase support for bank lending, the mainland government has indirectly eased the situation in which mortgage interest rates in the Mainland have reached new highs. It is reported that a total of at least 19 banks in Shenzhen, Beijing, Nanjing, Hangzhou, Guangzhou, Foshan and Xiamen have started to cut interest rates, which is the first time since last year that interest rates have fallen in a wide range of areas. According to Tencent’s smart property report, Bank of Beijing Shenzhen Branch lowered the mortgage interest rate for the first home purchase from the original benchmark interest rate by 15% to 10%; the second set of property interest rates also adjusted to a 15% increase in the benchmark interest rate.

Last month, the mainland’s first home mortgage interest rate averaged 5.71%, equivalent to a benchmark interest rate of 1.165 times, a record high this year, and for 22 consecutive months. Recently, the Mainland media pointed out that some cities have started to cut interest rates by some banks. Although the overall interest rate has maintained an upward trend, the trend of the overall increase has been different. Many first- and second-tier cities have begun to show signs of loosening.

Xiao Xiaoping, dean of the Shenzhen Chain Research Institute, said that in the context of the government’s early introduction of property market regulation measures, the reduction of mortgage interest rates is a normal response of banks to market changes, and is also related to factors such as changes in bank quotas. Changes in interest rates will cause a certain degree of warming or cooling in the market, especially affecting the buyer’s psychological expectations. The downgrade may be driving the market sentiment, but most people still maintain a wait-and-see attitude.