According to a report by Jinshi Data on July 22, the adjustment of LPR will not only benefit new homebuyers, but also families who are currently repaying their loans. Based on a loan principal of 1 million yuan and a 30-year equal principal and interest repayment method, after the interest rate is reduced by 10 basis points, the monthly repayment will be reduced by about 58 yuan, and the total interest will be saved by about 20,656 yuan.
However, the effect of the interest rate cut will not be apparent until the repricing date specified in the contract, which is usually the loan disbursement date or January 1 of each year. The market expects that interest rates will continue to fall, so apart from rigid demand, other home buyers may choose to wait, especially when house prices are still falling and there is an expectation of a fall.
Li Yujia believes that the decline in the risk-free interest rate of long-term bonds and its lower than the mortgage rate have dampened residents' enthusiasm for loans, so the interest rate cut is only beneficial to those who just need to buy a house. At present, the high-profile interest rate cuts for existing mortgage loans refer more to a reduction in basis points. If the difference between the interest rates of new mortgage loans and the interest rates of early existing mortgage loans continues to increase, the work of reducing the interest rates of existing mortgage loans in the second half of the year may be put on the agenda.