The Search Of Impact Of Interest Rate On The Real Estate Market

Reviewing the development of China's real estate market, changes in interest rates can be found on the real estate market has a significant impact, the state has been the interest rates to the real estate market as the primary means of macroeconomic control. This article summarizes the basis of recent studies and applys VAR model to study the impact of interest rates on the real estate market, and focuses on the impact of interest rates on real estate prices. The main contents and conclusions are as fol-lows:First, summarize the model approach and research result of domestic and foreign on interest rates and real estate in particular on the impact on the price of real es-tate. Established VAR model to be used in this study methods and research. And de-cided from the national, regional and urban multiple perspectives on the relationship between interest rates and the real estate market, the empirical analysis, but also from domestic and international comparative studies of the model selected data variables to be used.Second, from a national point of view of the impact of interest rates on the real estate market Use of amount of the quarterly interest rates, real estate prices, the do-mestic real estate loans, real estate, the actual investment GDP data to establish VAR model. With the Granger causality test, impulse response functions, variance decom-position analysis of the model. Found that, impact of interest rates on the real estate market are significant, rising interest rates will curb real estate prices in the short term rise, reducing the amount of real estate loans, and will continue to GDP caused by the negative impact of interest.Finally, from the region, the city's point of view were analyzed in 35 cities na-tionwide real estate development and real interest rates, real estate, real interest rate housing loans to individuals and long-term equilibrium relationship between real es-tate prices.Using E-G co-integration test and establishing ECM model to find that, interest rate policy in a unified real estate prices of the affected regions was not balanced conclusions.