At the press conference of the State Council Information Office on the 7th, the central bank announced a 0.1 percentage point reduction in policy interest rates, which is expected to drive down the loan market quoted rate (LPR) by about 0.1 percentage points; At the same time, the interest rate for personal housing provident fund loans will be reduced by 0.25 percentage points, and the interest rate for first-time home purchases over five years will be reduced from 2.85% to 2.6%, while the interest rates for other terms will be adjusted accordingly. This meeting released significant positive news, with policy measures exceeding expectations in both scope and intensity. It is expected to play a positive role in boosting confidence in the real estate market and stabilizing market expectations. ”Chen Wenjing, Director of Policy Research at the Zhongzhi Research Institute, stated. According to her statistics, since 2019, the interest rate for housing provident fund loans over 5 years has only been reduced twice, totaling 40BP. Prior to this adjustment, the interest rate for housing provident fund loans over 5 years was 2.85% for first-time buyers and 3.325% for second buyers. After this adjustment, it will be reduced to 2.6% and 3.075% respectively. It is expected to save more than 20 billion yuan in annual interest expenses on residents' housing provident fund loans, which is conducive to supporting the rigid housing needs of households. Chen Wenjing gave an example, saying that if a homebuyer takes out a loan of 1 million yuan and repays the principal and interest in equal installments for 30 years, if calculated at a housing provident fund first installment interest rate of 2.85%, the monthly payment would be 4136 yuan, with a total interest of 488800 yuan; If calculated based on the reduced new interest rate of 2.6%, the monthly payment is 4003 yuan, with a total interest of 441200 yuan. If the monthly payment is reduced by 133 yuan, the total interest will decrease by 47600 yuan. Wang Qing, Chief Macro Analyst of Dongfang Jincheng, believes that reducing the actual residential mortgage interest rate is a key move to promote the stabilization of the real estate market at this stage. Driven by a 0.25 percentage point reduction in personal housing provident fund loan interest rates, commercial personal housing loan interest rates will be further lowered in the future. In addition to the demand side, financial institutions are also making efforts on the supply side to meet the needs of real estate enterprises and financing to a certain extent, and to alleviate the liquidity risk of real estate enterprises. At the press conference on the 7th, the State Administration of Financial Supervision and Administration stated that the "whitelist" loans approved by commercial banks have increased to 6.7 trillion yuan, supporting the construction and delivery of more than 16 million residential units, effectively safeguarding the legitimate rights and interests of the vast number of homebuyers, and providing important support for the real estate market to stop falling and stabilize. After recent adjustments, the positive changes in the real estate market have been reflected in credit data. In the first quarter of this year, the balance of real estate loans increased by over 750 billion yuan, with new personal housing loans experiencing the largest quarterly growth since 2022. The series of policies introduced at the end of the third quarter of last year have played a significant role in promoting the stabilization of the real estate market, and the inventory level of commercial housing has gradually fallen from a high level, "said Ma Hong, a senior researcher at Guangkai's Chief Industry Research Institute. The State Administration of Financial Supervision and Administration revealed that the next step will be to accelerate the introduction of a series of financing systems that are compatible with the new model of real estate development, in order to help continuously consolidate the stable situation of the real estate market. Wen Bin, Chief Economist of China Minsheng Bank, stated that the State Administration of Financial Regulation will accelerate the improvement of a series of financing systems that are compatible with the new model of real estate development, including loan management measures for real estate development, personal housing, urban renewal, etc., to guide financial institutions to continue to maintain stable real estate financing, effectively meet the demand for rigid and improved housing, strengthen the supply of funds for high-quality housing, and help to continuously consolidate the stable situation of the real estate market. In the next stage, it is expected that commercial banks in various regions will quickly follow up with the central bank's policies, gradually lower personal housing loan interest rates, and further support the release of rigid and improved housing demand in the residential sector. The central bank will continue to extend and implement the "16 financial support policies" for the real estate industry, expand financial support for the construction of affordable housing, and promote and accelerate the operation of the domestic commodity housing market towards supply-demand balance. The goal of stabilizing and stopping the decline that the market continues to expect is expected to be achieved. ”Ma Hong said. From the performance of the real estate market, Chen Wenjing stated that the core city land market maintained a certain level of heat in April, with cities such as Beijing, Hangzhou, and Chengdu continuing to sell high premium land parcels. At the same time, the sales area of new houses in key cities remained relatively stable year-on-year at a lower base, while sales in core cities continued to grow driven by high-quality supply; The overall transaction volume of second-hand houses continues to grow year-on-year, but the market's "price for volume" is still mainstream. In May, several high-quality projects will still enter the market in key cities such as Beijing, Shanghai, Hangzhou, Nanjing, and Chengdu, with a focus on improving mid to high end products. "She said," The implementation of favorable policies combined with the entry of high-quality projects into the market is expected to promote better release of demand for improvement and replacement. It is expected that the real estate market will continue to recover in May