The decrease in both deposits and loans has activated the market: reducing the monthly mortgage payments and easing interest rate pressure.

On May 20th, following the decrease in LPR, Beijing, Shanghai, and other places adjusted their mortgage rates accordingly, mostly by a decrease of 10 basis points. At the same time, the six major banks announced a reduction in the RMB deposit benchmark interest rates starting from May 20th, with the highest decrease of 25 basis points. According to calculations, this adjustment in mortgage rates can reduce the monthly payment for a 30-year, one million RMB mortgage by about 54 RMB, saving nearly 20,000 RMB in total. Industry professionals believe that reducing mortgage rates can further lower the costs of mortgage loans, helping to stimulate housing consumption demand. Furthermore, the larger decrease in deposit rates can further protect the banks' net interest margins.