2018-02-28

PBoC, Banks Expected to Follow Fed Higher

Mortgage interest rates are headed higher in China.
However, the clouds of interest rate hikes have never been dispersed. The Fed will raise interest rates by another 3 to 4 times in 2018, and will raise interest rates for the first time next month.

Market participants believe that as the Fed continued to raise interest rates in March basically no suspense, the PBoC raised the possibility of raising interest rates on the open market operations;

Once the public interest rate is raised, the cost of capital of banks will rise. If banks are to cope with such pressure, they will inevitably find it through real estate credit.

So, in the course of the sharp rise in mortgage interest rates, there is an interesting phenomenon that joint-stock banks and city commercial banks are going up by more than the top four state-owned banks;

In fact, this can be understood, after all, their financial costs and the difficulty of financing are much higher than the four lines.

Since then, another seemingly contradictory phenomenon reported by the media (easy to loan interest rates high), it is easy to understand;

For example, among the 11 banks interviewed by "Securities Daily", staff of 7 banks said that they will make loans within 30 days after the mortgage is made.

A state-owned large bank loans the fastest, loan manager of the bank told reporters: "If successful, face finish the second working day loans, the mortgage the second working day will be able to lend."

The new year begins, the bank does not lack the limit, there may be cost pressures, so, from the bank point of view, it is easy to understand the floating mortgage interest rates.

Mortgage interest rates as a tool to control, under normal circumstances, the decision-making is not free to use, at this juncture of the "straw" out, meaning is self-evident, China's housing prices no longer have much room for growth.
iFeng: 银行“倒戈”房贷利率再上调 2018买房更艰难

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