The Impact Of Fluctuations In Interest Rates On The Price Of Commodity Houses In Chongqing

Commercial housing prices in recent years, rapid rise, not only brought a lot ofsocial problems, exacerbated the probability of the occurrence of the financial risk, theproperty market is also not conducive to the sustained and healthy development.Therefore, the Chinese government by raising interest rates can inhibit steadily risinghouse prices; been the economic impact at home and abroad, the residential market maybe a recession or downturn, the central bank cut interest rates, can the incentives todomestic demand and investment, to secure the stability of the property market. This isa real problem worth studying a nationwide debate and concern of the whole society.I first theoretical analysis to study the transmission mechanism of interest rates tocontrol prices. The central bank’s interest rate policy as the main method of governmentmacro-control of the commercial housing market. Fluctuations in interest rates affectedboth the costs and profits of the developers, but also affect the confidence of lending tohome buyers as well as ability to pay and the repayment pressure, and restrictinghousing prices of goods through the supply-demand relationship. Theory: With risinginterest rates, reduced demand greater than the supply rate of decrease in the short termleading commodity housing prices; With the increase in interest rates in the long termcommodity housing prices have gone up, but the volume will drop. However, due todifferences in the area, the residential market prosperity, economic development level,various cities affected by the impact of individual differences there is difference, thisarticle focuses on the effect of interest rate policy in the regulation of commercialhousing prices in Chongqing.Followed by evolved through successive interest rate policy of the central bank, theanalysis of the relationship between macroeconomic background with the commercialhousing market, the loan interest rate changes on the real estate market prices indifferent periods of the role of the size and impact of the instructions from the economicpoint of view. And discusses interest rate fluctuations on the supply of commercialhousing market in Chongqing in recent years, demand, prices three. In this analysis, the use of metering statistical software causality, correlation empirical analysis of therelevant data, to test the impact of central bank interest rate adjustment of the price ofcommodity houses in Chongqing. The results show that under the premise ofconsidering inflation, the effective interest rate of the term loan over five years for thethe Chongqing commercial housing price short-term impact is not obvious, the lagperiod was negatively correlated.Finally, the empirical results, the weak effect of interest rates to control prices,mainly due to the imbalance between supply and demand, and the interest ratetransmission mechanism is not smooth and lag interest rate regulation; makes it toachieve better regulation of prices and improve the interest rate operatingmechanismeffect, make the appropriate policy recommendations: first, graduallyimprove the financial system, promote market-oriented interest rate reform; second, tostrengthen the co-ordination of the interest rate policy and other policies; third, theadjustment of housing supply structure to guide scientific housing consumption.