How to solve the relationship between mortgage and house prices?


1.income is the most important factor affecting consumer behavior. With the increase of disposable income, the demand for real estate will increase correspondingly, and the level of income directly determines the level and structure of consumer consumption. With the improvement of income level, on the one hand, people’s requirements for living standards will continue to increase , Housing will be more larger, more reasonable structure, supporting services more comprehensive trend of development; the other hand, some of the original demand for purchasing power through income increases, into effective demand. Therefore, disposable income should have a significant positive correlation with the real estate price.

2.the real estate prices are generally affected by changes in interest rates greater demand from the point of view, interest rates decline in consumer loans to reduce the cost of housing, resulting in rising demand for housing, supply and demand curve shows that will affect the real estate prices rise; from the supply In terms of interest rate declines, the financing costs of real estate enterprises will decrease, developers’ investment will flow to the real estate industry endlessly, and the supply of real estate will increase. According to the supply and demand curve, it will lead to the drop in house prices. Therefore, the influence of interest rate on real estate prices The role is twofold.

3.prices and banks, the stock market even into one. Bank interest rates affect the price, while prices also affect the stock market. Real estate as an important constituent of the stock market, when prices rise, the real estate market will also rise. However, it is easy to imagine that when the property price bubble burst, prices plunged inevitably will also affect the plunge of the stock market and the damage to the interests of the banks. It is very frightening


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