A Study on the Management of Interest Rate Risk Housing Mortgage

Because of changes of financial conditions at home and abroad and the development of the fixed rate mortgages, housing mortgage loan faces a great risk. As a result, it´s essential to analyze the interest rate risk of personal housing mortgage loan. Based on the four manifestations of interest rate risk according to Basel new Capital Accord, this article uses the Static Notch Sensitivity Model and the Duration Gap Model to comparatively analyze the interest rate risk of fixed and float interest mortgage repayments, and then obtains the conclusion that the risk of fixed interest mortgage repayments is higher than that of float interest mortgage. At last the article will give the replying mechanism for the interest rate risk of housing mortgage loan from four parts.