Study On The Risk Of Personal Housing Mortgage Loan Interest Rate Changes

With the advance of the reform of housing system and deepening offinancial system's reform, developing the housing finance has been thekey point for boosting the housing consumption. As an important part ofhousing finance, private housing mortgage is also becoming a focus ofthe whole society. Implementation of the personal housing mortgage hasboosted the housing consumption and solved the present situation inwhich the supply of houses is much more than needed. Private housingmortgage has developed fast in these years, but the risk is unavoidablebecause its big sum and long duration. So it's necessary to strengthen theanalysis and precautions for the mortgage risk. This essay points thatamong so many main risks as default risk, liquidity risk, prepayment riskand interest rate risk, interest rate risk is of vital importance. It illustratesthe basic reflection of interest risk and provides a series of managementmeasures in combination with quantitive analysis. Generally speaking,the measures include setting up various interest rate patterns, providingvarious repayment mode and strengthening the establishment of thesecondary market. Essentially speaking, interest rate risk exists absolutelyand the different management mode is a zero-game between borrowerand commercial bank. Maximization of the total utility of the two parts isa question of structure and balance. Finally, the essay emphasizes that thegovernment should speed up the step of financial reform whichestablishes a good market environment for the housing mortgage.