The new housing loan interest rates in Guangzhou remain stable, and differentiated pricing based on market conditions will become the norm.

Recently, market news has stated that the first home loan interest rates in the Guangzhou area will be raised by 10 basis points, from the previous LPR-60 basis points, to a unified adjustment of LPR-50 basis points. However, it is widely expected in the market that the loan market quoted interest rates announced on May 20 may be lowered by 10 basis points. This means that the 5-year LPR may decrease from the current 3.6% to 3.5%. Based on this calculation, the previous first home loan interest rate in the Guangzhou area was 3.6% - 60 BP, which is 3.0%. If the LPR decreases by 10 basis points, the rate will be 3.5% - 50 BP, which is also 3.0%. This means that the final interest rate will "hedge" against the LPR reduction, maintaining a level of around 3%. Some industry experts point out that a house loan interest rate significantly lower than 3% for periods exceeding five years is unsustainable for banks. After experiencing the previous "price war", banks have formed a consensus that excessively low home loan rates are not in line with market principles. Maintaining a reasonable level of loan rates is beneficial for maintaining normal financial market order and promoting the stable development of the real estate market.