With the further optimization of the credit environment, the housing loan interest rate in many domestic cities continued to decline in February. According to the data released by the Shell Research Institute recently, under the dynamic adjustment mechanism of the first housing loan interest rate policy, the first mainstream housing loan interest rate in 100 cities hit a new low since 2019 in February. The interest rate of the first housing loan in 23 cities decreased, and the number of cities with the first housing loan interest rate lower than the lower limit of the housing loan interest rate (4.1%) increased to 34 cities. Wang Qing, the chief macro analyst of Orient Financial Prudential, said in an interview with the reporter of Securities Daily that the recent continuous decline of the housing loan interest rate was the result of the joint action of policy guidance and market supply and demand. The regulatory authorities set up a dynamic adjustment mechanism for the first housing loan interest rate policy, further releasing the policy signal of encouraging eligible cities to moderately reduce the first housing loan interest rate. The month-on-month decline of house prices in January narrowed slightly, and the real estate market in some cities warmed up. However, since the beginning of the year, the sales data of new houses in 30 large and medium-sized cities have remained at a low level, and the phenomenon of early repayment of loans has begun to appear everywhere. The housing loan market is leaning towards the lenders, which is also the reason why some banks have taken the initiative to reduce the housing loan interest rate. Recently, the interest rate of the first home loan in many places has dropped significantly. According to the statistical data of the Shell Research Institute, the average mainstream interest rate of the first set of 100 cities in February was 4.04%, down by 6BP on a month-on-month basis. After four months of basic stability, it fell significantly again, and the absolute level hit a new low since 2019. The average interest rate of the second set of housing loans was 4.91%, which was flat on a month-on-month basis. In addition, the loan interest rates of the first and second homes in February fell by 143BP and 84BP respectively year on year. Specifically, the interest rate of the first housing loan in the second-tier cities dropped the most on a month-on-month basis. In February, the mortgage interest rate of first-tier cities was the highest, with the average of 4.6% for the first set and 5.13% for the second set, both of which were the same as last month. The average interest rate of the first housing loan in second-tier cities was 3.99%, 8 BP lower than that of the previous month; The average interest rate of the first housing loan in the third and fourth tier cities was 4.04%, down 4BP from the previous month. The interest rates of the second tier and the third and fourth tier cities were 4.91% and 4.9% respectively, which were the same as last month. Recently, the latest LPR quotation was released, as the "anchor" of mortgage interest rate pricing - the LPR (loan market quoted rate) for more than five years remained unchanged in February, still at 4.3%. Under the dynamic adjustment mechanism of the first set of housing loan interest rate policy, what changes have taken place in the specific implementation of the housing loan interest rate of local banks? According to the monitoring of the Shell Research Institute, among the 38 cities that met the dynamic adjustment conditions of the first housing loan interest rate in February, the first housing loan interest rate in 17 cities, including Shijiazhuang, Harbin, Changchun and Fuzhou, fell back to less than 4%. A total of 23 of the 103 key cities monitored by the Shell Research Institute have lowered the loan interest rate of the first house. "Looking forward to the future, in order to guide the real estate market to achieve a soft landing as soon as possible, in addition to strengthening supply-side support, it is also the key to continue to reduce the residential mortgage interest rate and promote the stabilization and recovery of the real estate market." Wang Qing said that the current residential mortgage interest rate is relatively high and there is room for a certain reduction. In the first half of the year, the LPR offer for more than five years may still be reduced by 0.1 percentage points to 0.15 percentage points. This will drive the interest rate of newly issued residential housing loans to be reduced by a greater margin, thus helping the housing market to rise around the middle of the year