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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (25954)	3/18/2005 6:12:38 PM
From: RealMuLan	Respond to of 116555

Mish, 6.12% is for people who apply the loan of <5 years. For those who apply the loan for >5 years, can get 90% of that rate, which is 5.51%. And before this increase, the 90% of regular rate was 5.31%. So the actual increase is only 0.2%<g> If one applies 100,000 Yuan loan, the actual increase only comes to about 200 Yuan a year. So the rate increase itself does not mean much<g> But the down payment before March 17th was only 20%, and now increase to 30%, which is quite a bit. And the next step will be 40%. So the main purpose is to decrease the risk of the banks. Many insiders say these policy changes will curb the pace of the increase of the housing price, but will not stop the increase. I guess they may be right. So those who count on the bubble burst might have to wait much longer<g>