Low Mortgage Rates: Increase in Homebuyers?

Recently, the stock market has been one of the hottest topics. Do you remember the starting point of this wave of the market? That's right, it was September 24th. Starting from that day, in addition to a series of policies supporting the capital market, there have also been numerous policies to boost the real estate market. How has the real estate market performed recently? Let Xiao Xia introduce the recent situation of the real estate market starting from September 24th.

At the meeting on September 24th, People's Bank of China Governor Pan Gongsheng announced that the average existing mortgage interest rate would be reduced by 0.5 percentage points, and the minimum down payment ratio for the second home would be reduced from 25% to 15%.

From the announcement of the news to the official implementation of the policy, it only took 5 days. On September 29th, the People's Bank of China issued a notice to carry out batch adjustments to the existing mortgage interest rates. Starting from November 1st, eligible borrowers can negotiate with banks to adjust the actual paid interest rates. If you are eligible, you don't need to take time to run to the bank branch; you can also operate through online banking, mobile banking, and other channels. As for the details of the specific operations, they have not been announced yet. In principle, 18 national commercial banks should announce the operational details before October 12th. By October 31st, all commercial banks should also complete the batch adjustment work. This batch adjustment covers the existing mortgages for the first home, the second and above homes, and no longer distinguishes the number of mortgages. With relaxed conditions, more borrowers can enjoy the benefits. According to the People's Bank of China's calculations, after this reduction in existing mortgage interest rates, about 50 million borrowers will enjoy interest discounts, reducing the annual interest expenditure of borrowers by about 150 billion yuan.

Specifically, how much money can we save for each borrower? Let's assume a scenario where Xiao Xia needs to repay a 1 million yuan existing mortgage with a term of 25 years and an equal principal and interest repayment method. If the mortgage interest rate is reduced from 4.4% to 3.55%, Xiao Xia's annual interest expenditure will be reduced by about 5,600 yuan.

At the same time as the central bank's policy release, many regions have also introduced a series of real estate optimization policies. On October 5th, the Ministry of Housing and Urban-Rural Development introduced that since the end of September, various places have launched real estate optimization adjustment measures, dozens of provinces, and hundreds of cities have organized the Golden Autumn Promotion Season, Housing Expo, live house viewing, and other activities, promoting the growth of commercial housing sales and the recovery of market confidence.

During the National Day holiday, the sales volume of commercial housing in many places increased to varying degrees. Among them, the real estate markets in Beijing, Guangzhou, Shenzhen, and other places performed quite well.

The number of visits and subscriptions for new and second-hand housing markets in Beijing both increased significantly. In the first three days of the holiday, the number of visits to new houses in Beijing increased by 92.5% compared to the same period last year, and the number of subscriptions doubled. At the same time, the number of visits to the second-hand housing market increased by more than 100%. In Guangzhou, the daily number of visits to some buildings exceeded 150 batches, an increase of 200% compared to usual.

After the new policy was released on September 29th, many buildings in Shenzhen immediately started the "non-stop house selling" mode and achieved significant sales results. During the National Day period, Shenzhen's new house subscription sales volume increased by more than 600% year-on-year, and the number of visits and transactions of second-hand houses also increased significantly. Taking a project in Longhua, Shenzhen, as an example, more than 100 housing units were sold within 36 hours, and the sales amount exceeded 1 billion yuan. The number of visits to second-hand houses by top intermediary agencies in Shenzhen during the National Day period reached 24,620 people, and the transaction volume was 1,314 sets.