Monetary Policy And House Prices Based On Credit Perspective Study

MOF China decrease down payment from 30% to 20%, and permit bank to provide loan with 70% of benchmark lending rate at 2008,Nov. Housing Price jump from 2009,Feb.At some district,price almost increase by more than 50 percent.The change of percentage of down payment and interest rate has great influence with housing price.The relationship between housing price and monetary policy,especially credit policy is a very interesting topic.This paper will start from monetary policy and explain how monetary policy and credit policy affect housing price,use part equilibrium model to show the relationship between loan and housing price.Because it is too hard to get real excutive interest rate in Housing loans,many scholars slide over the difference between excutive interest rate and benchmark lending rate.But in this paper ,sensitive analysis is used to illuminate the importance of change of down payment rate and interest rate.The example of American subprime mortgage is shown to prove that loan is an important cause to impact the house price.At last,VAR method,Granger proof-test is used to research the relationship between housing loan and house price.