CSC: Lower mortgage interest rates send positive signals and the political trend remains unchanged

Updated 2 hours ago (GMT+8)

CSC pointed out that after the central bank and the China Banking and Insurance Regulatory Commission lowered the lower limit of the first mortgage interest rate, the current interest rate has more room to fall than the lower limit. The reduction in the lower limit of interest rates is a positive response to the “support for all localities to improve housing policies and support a rigid and improved demand for housing” put forward at the meeting of the Political Bureau of the Central Committee of the CCP on April 29. The lowering of the mortgage interest rate to improve the expectations of home buyers has a positive effect on the improvement in sales. Although the reduction in the mortgage interest rate has limited the savings on average monthly expenses for homebuyers, it has sent a positive support signal, which is helping to improve homebuyers’ expectations and further boost sales. In the context of “sustained growth”, the real estate sector, as a pillar sector of the national economy, should receive more support. We believe that the trend in real estate policy remains unchanged. With the gradual control of the epidemic and the gradual resumption of production and operation, the effect of the policy is expected to accelerate. Reiterating the view of the bullish real estate sector remains unchanged.

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