Chinese Mortgage Rates Still Rising

iFeng: 房贷利率连升14个月!贷100万30年利息多出22万
In February 2018, the national mortgage interest rate continued to rise, rising for 14 consecutive months. According to 360 financial monitoring data, the average interest rate for the first home loan in the country in February was 5.46%, which was equivalent to 1.114 times the benchmark interest rate, which was a month-on-month increase of 0.55%.

...The financial monitoring data show that in February 2018, the average interest rate of the nation’s first home loan increased by 22.15% year-on-year in February 2017. With the current average loan interest rate of 5.46% for the first home loan in the country and a one-year principal and interest repayment amount of 30 years, only the interest would need to be repaid by approximately 1.035 million yuan, while the interest to be repaid in the same period last year was approximately 817,600 yuan. During the year, interest expenses increased 217,400 yuan.

...At present, many second-tier cities have relaxed restrictions and attract large numbers of talents, and 360 analysts believe that the introduction of talents in the second and third tier cities in the future will boost demand for housing in the city, and banks may apply for mortgage loans because of local preferential policies. Acceptance of certain preferential treatment, but based on rising cost of capital, mortgage interest rates will continue to rise.

Financial 360 analysts said that the current differential control of real estate has begun to bear fruit. The policy of restricting purchases in first-tier cities has made housing prices return to rationality, and destocking in third and fourth-tier cities has also accelerated. Judging from the average interest rate of mortgages, the average interest rate in first-tier cities has been lower than the average interest rate in second-tier cities. From the perspective of interest rate growth, the growth rate of mortgage interest rates in the next-tier cities may be lower than that in second-tier and third-tier cities.

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