On the morning of February 20th, the People’s Bank of China authorized the National Interbank Funding Center to announce that on February 20th, 2024, the quoted interest rate (LPR) in the loan market was: 3.45% for one-year LPR and 3.95% for five-year LPR. The 1-year LPR remains unchanged compared with the previous period, and the 5-year LPR is lowered by 25 basis points. This is also the largest interest rate cut since LPR linked to mortgage interest rate after the interest rate cut of 10 basis points in June last year.
The picture is from the website of China People’s Bank.
The reporter calculated an account, calculated according to the loan of 1 million yuan, the fixed number of years of 30 years, and the equal principal and interest. Without considering the situation of adding points, the downward adjustment of LPR for more than 5 years will save interest for buyers by more than 50,000 yuan; Average capital saved nearly 38,000 yuan in interest.
Repayment required before downward adjustment.
Repayment required after downward adjustment.
When will the interest rate cut red envelope land?
Property buyers can inquire about the loan repricing date.
When will the interest rate cut red envelope land? The first benefit of this interest rate cut is the new home buyers, who can immediately enjoy the loan interest rate after the interest rate cut.
However, for the stock of old buyers, it is necessary to wait until the loan repricing date.
If you enjoyed the red envelope of interest rate reduction in 2023 in the past January, it means that the repricing date of your loan is January 1. One million mortgages with 30-year commercial loans equal to the principal and interest, and the monthly payment will be reduced by about 60 yuan, which will save about 700 yuan in one year. This group that enjoyed interest rate cuts in January will begin to enjoy interest rate cuts in January 2025.
If the loan pricing date is the loan issuance date, and the loan issuance date is after February, it is expected to get the the Year of the Loong interest rate reduction red envelope in advance.
The interest rate cut has been expected in the market. In December 2023, national commercial banks lowered the deposit interest rate. Therefore, although MLF remained unchanged before, the mainstream view of market institutions still judged that the interest rate trend of LPR in February or independent of the flat MLF was lowered.
On February 18th, the Financial Times, which is in charge of the central bank, analyzed that in the next stage, the nominal interest rate and real interest rate, including LPR in February, are still expected to decline.
关于作者