Recently there was an LPR policy? 5

What is LPR?

The Lending Base Rate (LPR), the lending market** rate, was determined in October 2013. LPR is one of the 18 large and medium-sized banks with strong comprehensive strength, through its own **, to establish an optimal loan interest rate for the industry's pricing reference, and other loan interest rates can fluctuate up and down on this basis. Banks should report their own optimal, remove a maximum and a minimum, and then use the loan ratio of each bank in the previous quarter as a weighted coefficient to calculate the weighted average, which is the LPR.

What changes have been made to the new mechanics?

First, the frequency changes: from per price to once a month. Secondly, the change of mode:

**The method is formed by adding points to the open market operation interest rate, where the open market operation interest rate mainly refers to the medium-term loan facility (MLF) interest rate, and the term is mainly one year.

According to the reply of the relevant person in charge of the People's Bank of China, after the conversion of the pricing benchmark, the interest rate of the first set of new personal housing loans issued nationwide shall not be lower than the interest rate of the corresponding periodical large-limit loans; The interest rate of the two sets of personal housing loans shall not be lower than the interest rate of the corresponding term loan plus 60 basis points. This policy itself is not to directly raise or lower the existing mortgage interest rate, but to impose stricter regulations on housing loans on a market-based basis.

How often is the LPR rate adjusted? Will there be any changes to home loans after implementation?

The LPR interest rate is generally released at 9:30 on the 20th of each month, and can be inquired through the official website of the National Interbank Funding Center and the official website of ** bank. After the implementation of the LPR rate, housing loans may increase or decrease. The specific is determined according to the scope of LPR interest rate adjustment.

What happens to the previous contract after the mortgage interest rate is changed to LPR?

After changing to LPR, you need to sign a loan contract with the bank again. Once a new contract is signed, the old contract will become invalid. In addition to changing the home loan pricing benchmark rate to LPR, you will also need to select the validity period of the LPR interest rate.

The minimum term is 1 year and the maximum term is the entire loan term. It should be noted that when the housing loan interest rate is converted to LPR, each user can only convert it once. Once the conversion is successful, it cannot be changed again.

Personally, I think it is a temporary policy of the state, that is, not to let the bank put all the money saved by the people into the real estate, simply put, the bank looks at the mortgage to make money.

It may be that the implementation of this model can reduce the interest rate of housing loans and reduce the burden on residents.

This is because it is more in line with China's economic development policy and is conducive to the people's livelihood.

From this policy, it can be seen that the central bank is a policy to stabilize housing prices. Because the LPR has remained unchanged for 10 months, it means that the central bank has not regulated it precisely in order to stabilize housing prices. It can be seen from this point that the central bank is cooling down the real estate industry, because the current housing prices are somewhat too high, and there is a certain bubble.

Therefore, in order to reduce the risk of the real estate sector, the central bank will keep the LPR unchanged for 10 months, which I think is a very good move. Through this measure, the growth of housing prices can be effectively controlled, so that the real estate industry can return to the normal track to operate.

Why is this policy being pursued?

Because China's housing prices are already very high, if the house continues to rise, the fight will lead to a very serious real estate bubble. Once the real estate bubble bursts, it will deal a serious blow to the entire economic ecosystem of China. Therefore, in order to solve the systemic crisis of real estate, this policy will be implemented.

Why are China's housing prices rising so fast?

Since China's reform and opening up, China's real estate industry has risen rapidly. Coupled with the large Chinese population, the demand for houses is very large, so the ** of China's real estate has been rising. Due to the important contribution made by China's economic real estate, the first year of housing has been rising, but the early economic development has left many historical problems, so high housing prices have also become a problem.

So far, housing prices in China have been rising.

Why do you want to make sure that real estate doesn't bubble?

Because once there is a bubble in real estate, the impact is very bad, and it will affect all industries. Because the proportion of real estate in the economy is very large, once the real estate industry is back and forth in a serious bubble, then various industries will definitely suffer great losses. Therefore, in order to ensure the steady development of the real estate industry, the state will introduce relevant regulatory policies.

Only with this kind of regulatory policy can it be possible that there will be no bubble in real estate. In this way, the country's economic development can be guaranteed.

Summary: Now the era of rapid growth in housing prices has passed, but the state has controlled housing prices. Therefore, the increase in housing prices will become very slow, which will also make more people afford to buy houses.

So for the vast majority of people, as long as they work hard and increase their income, they can still afford to buy a house.