A Comparative Study Of The Interest Rate Influencing The Real Estate Market Of Chinese And American

The interest rate is not only the most important variable in financial system, but also the most fundamental variable in market economy. The interest rate works depends on its mechanism. The interest rate's importance has been re-established in application of monetary policy since 1978. It has become the core of a series of economy policies in the people's bank of China. The real estate market is the importance constitutes part of our socialism market economy. The real estate industry is the new pillar industry in our country. In the development process of the real estate industry, how drawing lessons from foreign beneficial experience and adjusting the interest rate to keep the real estate market abiding, healthy and stabilized development is very important.This text reviews the general theories of the interest rate and the real estate market. According to the interest rate mechanism principle and the real estate market balanced theories, firstly we putting forward the theories frame of the interest rate and the real estate market: The interest rate influences the real estate market by influencing the real estate price mostly. We can go deep into analyse by the supply and demand of the real estate market.Then, this text looked back the development process of the interest rate policy and the real estate market in the United States and our country. According to the interest rate-real estate market supply and demand theories model and plentiful data, we make use of Eviews to analyze the relation of the interest rate and the real estate market in the United States and China. According to the history analysis of the interest rate and the real estate market development and the logic analysis of the data, paying attention to the difference of the USA and China, we compare American instance with Chinese and believe that some American experience is good for our country. This experience includes the following three aspects: firstly, the interest rate influencing the demand is more effective than the supply;secondly, the interest rate have a function depending on the interest rate liberalization;thirdly, the development of the real estate investment trusts is very beneficial to the real estate market.