the LPR over 5 years has been adjusted for the third time in the year. < br > < div class =" continheight "> < / div > the national inter-bank lending center authorized by the people’s Bank of China announced that on August 22, 2022, the quoted interest rate (LPR) of the loan market was: 1-year LPR was 3.65%, down by 5 basis points, and 5-year LPR was 4.3%, down by 15 basis points. < br > < div class =" continheight " "> < / div > cumulatively, since the beginning of this year, the 1-year LPR and the 5-year LPR have been reduced by 15 basis points and 35 basis points respectively. Among them, in May this year, the 5-year LPR was announced to be reduced by 15 basis points to 4.45%, the largest decrease since the implementation of LPR. This time, the 5-year LPR has been reduced by 15 basis points again. < br > < div class =" height " "> < / div > Chen Wenjing, director of Market Research of index business department of China Index Research Institute, pointed out that as of August 2022, the LPR over 5-year period had been reduced by 35 basis points, which was the year with the largest interest rate reduction after the mortgage interest rate was changed to the LPR over 5-year period in 2019. < br > < div class =" contheight " "> < / div > for the real estate market, it is the LPR over 5 years that can better reflect the trend of the mortgage loan interest rate. As the reference benchmark of the housing loan quotation, the adjustment of the LPR over 5 years will affect the housing loan of the buyer. That is, the decline of the LPR means the reduction of the monthly payment amount, that is, the reduction of the purchase cost. < br > < div class =" height "> < / div > according to the regulations, the interest rate of the first set of personal housing loan newly issued shall not be lower than the LPR of the corresponding period (according to the LPR of more than 5 years on August 22, it was 4.3%); The interest rate of the second set of personal housing loans shall not be lower than the LPR of the corresponding period plus 60 basis points (4.9% based on the LPR of more than 5 years on August 22)< Br > < div class = "height" > < / div > this time, the LPR of more than 5 years is lowered again, which is “in line with market expectations” in the industry< Br > < div class = "height" > < / div > Yan Yuejin, research director of the think tank center of E-House Research Institute, pointed out that the further reduction of LPR was in line with market expectations, and the MLF interest rate cut earlier made everyone not surprised by the interest rate reduction. However, the interest rate cut by 15 basis points was slightly higher than expected, which fully illustrates the orientation and urgency of further reducing the medium and long-term capital cost< Br > < div class = "height" > < / div > take the mortgage loan with a loan amount of 1 million yuan and 30-year repayment of equal principal and interest as an example. Before the interest rate adjustment, the LPR of the first personal housing was 4.45%, and the monthly payment was 5037.19 yuan. After the interest rate adjustment, the LPR over 5 years is 4.3%, and the monthly contribution is 4948.71 yuan. Based on this calculation, the monthly contribution decreased by about 88.48 yuan, and the total loan interest decreased by about 31900 yuan< Br > < div class = "height" > < / div > from the cumulative decline of LPR over 5 years since this year, the monthly contribution will be reduced by about 207.66 yuan under the same conditions< Br > < div class = "height" > < / div > 58 Lu Qilin, research director of anjuke Real Estate Research Institute, pointed out that the five-year LPR adjustment is the third adjustment of this year. After the two previous interest rate cuts, the loan expenditure of home buyers will be significantly reduced, which will promote the entry of housing demand into the market and help the real estate market to warm up. For existing housing loan customers, the adjustment of loan interest rate will be reflected in the next interest year< Br > < div class = "height" > < / div > Jiang Han, senior researcher of Pangu think tank, pointed out that from the perspective of the current LPR decline, the short-term LPR decline is less, and the long-term LPR decline is more, which can also represent the current overall market expectation and promote the interest rate of the entire market to develop in a more rational direction. Therefore, there are different long-term and short-term decline arrangements< Br > < div class = "height" > < / div > from the perspective of the development of the real estate industry, Jiang Han believes that the impact on the real estate market, especially the mortgage market, is very far-reaching. For those who repay housing loans, the decline of LPR can lower the overall benchmark interest rate, reduce the overall repayment pressure of those who repay housing loans, and help to improve the level of disposable income. As for the house purchase market, the decline of LPR can stimulate the rigid demand of the house purchase market, enhance the activity of the property market, and promote more rigid demand buyers to further enter the market< Br > < div class = "height" > < / div > Li Yujia, chief researcher of the housing policy research center of the Guangdong Provincial Institute of urban planning, also mentioned that the interest rate cut will greatly promote the rigid demand, the improved demand and the demand for house replacement< Br > < div class = "height" > < / div > it is worth mentioning that at present, many places have implemented differentiated housing credit policies to support rigid and improved housing demand, and the interest rate of the first home loan in many places has been lowered to 4.25%< Br > < div class = "height" > < / div > on May 15 this year, the people’s Bank of China and the China Banking and Insurance Regulatory Commission issued the notice on issues related to the adjustment of differentiated housing credit policies. It is proposed that for residential households who purchase ordinary self owned housing with loans, the lower limit of the interest rate of commercial personal housing loans for the first set of housing should be adjusted to be no less than 20 basis points less than the market quotation rate of loans for the corresponding period, The lower limit of the interest rate policy for commercial personal housing loans for two sets of housing shall be implemented according to the current provisions< Br > < div class = "height" > < / div > subsequently, the interest rate of housing loans in many places decreased on the basis of 4.45%, including Xinjiang, Qinghai Xining, Anhui Bengbu, Jiangxi Jiujiang, Jiangxi Yichun, Jiangsu Suzhou, Tianjin, Henan Zhengzhou, Shandong Qingdao, Shandong Jinan, Inner Mongolia Hohhot, Hebei Tangshan, Jiangsu Nantong, Guangdong Huizhou, etc. the interest rate of the first set of housing loans decreased to 4.25%< br>