Millions of home loan interest rates have halved from their peak, and mortgage rates have reached a historic low.

On May 8th, after the central bank announced the "reserve requirement ratio cut and interest rate cut" and lowered the housing provident fund loan interest rate, many cities such as Beijing and Shenzhen swiftly followed suit with the new policy, announcing a 0.25 percentage point reduction in the interest rate for individual housing provident fund loans. The interest rate for first-time home buyers with a term of over 5 years is now reduced to 2.6%. In the industry's view, the interest rate of provident fund loans has a certain "anchoring" effect on commercial loan interest rates. The narrowing gap between the interest rates of provident fund loans and commercial loans in the past has limited the space for lowering commercial loan interest rates. The new policy is expected to drive down commercial loan interest rates, and the reduction may exceed the reduction in the LPR. Looking back at the peak of interest rates in recent years, how much has the burden of housing loans really been reduced? Taking a house with a total price of 3 million as an example, if calculated with a down payment of 30%, a 30-year commercial loan, and equal principal and interest, the interest rate for first-time home buyers has dropped from the peak of 5.74% in 2021 to 3.01%, equivalent to halving the total interest amount and reducing monthly payments by nearly 30%.