LPR降息10基点，存量房贷利率最快7月下调

Core Viewpoint - The recent interest rate cut by the People's Bank of China (PBOC) is expected to lower mortgage costs for residents, with a significant impact on the housing market and overall economic financing costs [1][3][7]. Group 1: Interest Rate Changes - The PBOC announced a reduction in the Loan Prime Rate (LPR) by 10 basis points, with the 1-year and 5-year LPR now at 3.0% and 3.5% respectively [1][2]. - This reduction is anticipated to decrease the total repayment amount for a typical mortgage of 1 million yuan over 30 years by approximately 19,000 yuan [3][5]. - The average interest rate for new personal housing loans was about 3.1% as of April, indicating a downward trend in borrowing costs [7]. Group 2: Impact on Banks and Financing Costs - Major state-owned and joint-stock banks have initiated a seventh round of deposit rate cuts, with reductions of 15 to 25 basis points, which is greater than the LPR cut [1][9]. - The adjustments in deposit rates are expected to lower banks' funding costs, potentially leading to a positive impact on net interest margins [10]. - The overall financing costs for the real economy are projected to continue declining, supporting effective financing demand [7][10]. Group 3: Future Outlook - Analysts predict that further interest rate cuts may occur in the second half of the year, as external demand slows and domestic price levels remain low [2][6]. - The PBOC's recent policy adjustments are seen as necessary to stimulate effective financing demand and stabilize credit levels amid ongoing economic uncertainties [7][8]. - The banking sector is expected to face continued pressure on net interest margins, with forecasts indicating a downward trend in the coming years [11][12].