The People's Bank of China announced on Monday that the country's one-year Loan Prime Rate (LPR) remains unchanged at 3.45%, while the over-five-year LPR holds steady at 3.95% compared to the previous month. This decision comes amidst a series of significant measures aimed at revitalizing the real estate sector.
Zou Linhua from the Chinese Academy of Social Sciences highlighted a decreasing correlation between the over-five-year LPR and mortgage interest rates, indicating a potential shift in the housing market dynamics.
Last Friday, China unveiled a range of substantial policies designed to boost the housing market and ensure sustained development within the real estate industry. Among these measures, the abolition of mortgage floor rates is expected to create opportunities for lowering mortgage rates and reducing the minimum down payment ratios.
\"It can play a positive role in stabilizing housing prices, balancing supply and demand, and improving real estate market expectations,\" Zou remarked. She anticipates that mortgage rates could decrease to around 3.4% in most Chinese cities. However, cities already experiencing rates at this level may have limited scope for further reductions.
Reference(s):
cgtn.com
