Core Viewpoint - The recent reduction in the Loan Prime Rate (LPR) has led to historically low mortgage rates in Beijing, benefiting both new home buyers and existing mortgage holders [2][6]. Group 1: Mortgage Rate Changes - The first home loan interest rate in Beijing has dropped to 3.05%, while the second home loan minimum rate is now 3.25%, both setting historical lows [2][6]. - The LPR for 1-year loans is set at 3.00%, and for 5-year loans at 3.50%, which directly influences the mortgage rates [2][4]. Group 2: Impact on Existing Loans - The recent LPR reduction of 10 basis points means that for a first home loan of 1 million yuan over 25 years, monthly payments could decrease by approximately 54 yuan, saving around 20,000 yuan in total interest [7][8]. - Existing first home loan rates in Beijing are set at LPR minus 30 basis points, while second home loans vary based on location, with rates of LPR minus 5 basis points for properties within the Fifth Ring and LPR minus 25 basis points for those outside [8]. Group 3: Policy Background - Since August 2019, mortgage rates have been determined based on the LPR, with local adjustments made according to market conditions [4][5]. - The adjustment mechanism allows provinces to set their mortgage rates based on the LPR, ensuring that local market conditions are taken into account [5].