Chinese Banks Cut Mortgage Rates in Bid to Boost Demand

What’s new: Banks continued to lower mortgage rates in February and fewer Chinese cities reported a drop in housing prices in January, in signs that an easing of policy curbs aimed at propping up the market is having an effect.

Mainstream mortgage rates for new and pre-owned housing in 103 surveyed cities each dropped by 9 basis points from last month to 5.47% and 5.75% in February, respectively, according to data compiled by the Beike Research Institute, a property think tank. Banks have also accelerated mortgage approvals, the institute said Monday.