The interest rates of personal housing loans to rise!!!

The interest rates of personal housing loans to rise!!!
Aug 22, 2007 01:31
JOHNNY512 Points: Join Date: Nov 29, 2004 Status: offline	In order to curb the inflation and to cool down the overheating economy, the central bank raises interest rates again. It is the fourth time that China has raised the interest rates in 2007. The one-year deposit rate will increase to 3.6%, while the one-year lending rate will rise to 7.02%. This move aims at steering the bank credit and curb the accelerating inflation. Meanwhile, the interest rates of personal housing accumulation fund loan also will rise. The interest rate of five-year or above housing loans will rise from 4.95% to 5.04%. The interest rate of five-year or below housing loans will increase from 1.05% to 4.59%. After the release of this news, people discuss it heatedly. Some people support this move. They say that the aim is to stabilize the real estate. People's craziness on buying houses is accelerating though the house price is rising sharply. If things go on like this, it will trigger serious social problems. Meanwhile, the bubble does exist in the real estate. To ensure the healthy development of real estate, it is necessary to take some measures. On the other hand, some people condemn that the government should not raise the interest rate of personal housing loans. Actually, the house price is unbearable and people can not afford it. Raising the interest means that people have to burden much economic debts. The benefits of these house slaves have been deeply hurt. Both sides have their own reasons. Who is right? What do you think of this move?

Aug 22, 2007 01:31

JOHNNY512
Points:
Join Date: Nov 29, 2004
Status: offline

In order to curb the inflation and to cool down the overheating economy, the central bank raises interest rates again. It is the fourth time that China has raised the interest rates in 2007. The one-year deposit rate will increase to 3.6%, while the one-year lending rate will rise to 7.02%. This move aims at steering the bank credit and curb the accelerating inflation. Meanwhile, the interest rates of personal housing accumulation fund loan also will rise. The interest rate of five-year or above housing loans will rise from 4.95% to 5.04%. The interest rate of five-year or below housing loans will increase from 1.05% to 4.59%.

After the release of this news, people discuss it heatedly. Some people support this move. They say that the aim is to stabilize the real estate. People's craziness on buying houses is accelerating though the house price is rising sharply. If things go on like this, it will trigger serious social problems. Meanwhile, the bubble does exist in the real estate. To ensure the healthy development of real estate, it is necessary to take some measures.

On the other hand, some people condemn that the government should not raise the interest rate of personal housing loans. Actually, the house price is unbearable and people can not afford it. Raising the interest means that people have to burden much economic debts. The benefits of these house slaves have been deeply hurt.

Both sides have their own reasons. Who is right? What do you think of this move?

Aug 22, 2007 22:48	#1
ZOEY Points: Join Date: Nov 29, 2004 Status: Offline	Yes, those who want to buy houses will have to burden much debts. However, If the flation really occurs, the situation will be more serious.

Aug 22, 2007 23:12	#2
BBQQ Points: Join Date: Feb 7, 2007 Status: Offline	The rise of loans can only do harm to ordinary people who need loans. But for those who are rich enough to buy the house in cash, no problem.

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