A Research On Impact Of China's Housing Price Is Effected By Mortgage Rate Policy In Recent Years

People's Bank of China has risen mortgage rate 9 times in order to regulate housing demand and maintain price stability since 2002, but the price is still increasing steadily. It is a hot topic which is worth of study whether Macro-control policy by increasing interest is effective. On the basis of previous studies, this paper does a more focused qualitative and quantitative analysis in the area of controlling prices by interest rate policy, choosing the variables more consistent with the actual situation. It works on the housing price mechanism and the effect of mortgage rate policy.This paper specifically analyzes the supply and demand factors of the rising causes starting from condition of housing price rising, holds that the rising cause is the imbalance between supply and demand because of sudden rise in demand. The state introduces a variety of policy instruments to control this, such as controlling the supply of housing by land policy, controlling investment demand by tax policy, and controlling funds supply by credit policy. Rate policy plays an important role on controlling the sudden fast rise whereas it impacts both supply and demand.By comparative analysis and structural analysis of rate policy, it believes that the cause of rate policy's weak effect is the conduction mechanism is not smooth, thus we should go on market-oriented reform of interest rate in order to improve the conduction mechanism. Through empirical analysis on related variables by Eviews software, it reflects that the rising mortgage rate impacts more on National Price Index up than Ring Index, their interest rate flexibility are -0.08 and 0.03, while in Lanzhou and Shanghai they are-0.14 and 0.03. The real demand dominate in Lanzhou and investment demand is stronger in Shanghai, the mortgage rate effect is less than in Lanzhou.At last it comes to the conclusion that mortgage rate policy is one of the effective means of controlling price and it has a definite impact in Chinese practice, and we should go on regulate housing market and improve interest rate transmission mechanism to achieve objectives better.