Recently, the People's Bank of China and the CBRC issued a notice, deciding to establish the first dynamic adjustment mechanism of housing loan interest rate policy. In cities where the selling price of new commercial residential buildings has declined month on month and year on year for three consecutive months, the lower limit of the local loan interest rate policy for the first housing can be maintained, lowered or cancelled periodically. The notice said that from the fourth quarter of 2022, each city government can conduct a dynamic evaluation of the change in the sales price of new commercial residential buildings in the local area at the end of each quarter, and the evaluation period is from the end of the previous quarter to the second month of this quarter. For cities where the selling price of new commercial residential buildings has decreased month on month and year on year for three consecutive months during the evaluation period, the lower limit of commercial personal housing loan interest rate for the first housing will be eased periodically. According to the principle of implementing policies based on the city, the local government can decide to maintain, reduce or cancel the lower limit of the commercial personal housing loan interest rate of the local first housing in stages from the next quarter. Under other circumstances and the lower limit of the commercial individual housing loan interest rate policy for the second set of housing, the current provisions shall apply. The notice clearly stated that for cities that have adopted phased reduction or cancellation of the lower limit of the commercial personal housing loan interest rate for the local first house, if the sales price of new commercial residential buildings has risen for three consecutive months month on month and year on year in the subsequent evaluation period, the national unified lower limit of the commercial personal housing loan interest rate for the first house should be restored from the next quarter. The People's Bank of China said that the housing loan interest rate policy is linked to the price trend of new housing and dynamically adjusted, which is conducive to supporting urban governments to scientifically assess the changes in the sales price of local commercial residential buildings. The policy tool box is fully used to better support the demand for rigid housing and form a long-term mechanism to support the stable and healthy operation of the real estate market. (Liu Xinshe)