China’s Mortgage Rates Dip as Central Bank Acts to Bolster Property Market

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China’s home mortgage rates dropped in May as the central bank scrapped the national minimum mortgage rate requirements for households buying their first or second homes, industry data showed.

The mainstream mortgage rates — the rates at which most transactions take place during a given period — on first homes averaged 3.45% in May in the 100 cities monitored by the Beike Research Institute (BRI), down 12 basis points from the previous month, the real estate think tank said in an article Tuesday. For second homes, the average rate fell 26 basis points to 3.9%.

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China's average mortgage rates fell in May, with first-home rates at 3.45% and second-home rates at 3.9%.
The People’s Bank of China removed national minimum mortgage rate requirements and lowered down-payment requirements.
Rates dropped across different city tiers, with first-tier cities seeing the largest decreases.

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Who’s Who

Beike Research Institute: The Beike Research Institute (BRI) is a real estate think tank that monitors and provides data on China's housing market. In May, BRI reported that China's mainstream mortgage rates for first and second homes fell, following measures by the People’s Bank of China to support the property market. The data showed significant rate drops across cities of different tiers.

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What Happened When

May 2024：: China’s home mortgage rates dropped as the central bank scrapped the national minimum mortgage rate requirements for first and second homes.

Mid-May 2024：: The People’s Bank of China (PBOC) announced measures to support the property market, including scrapping the national minimum mortgage rate requirements and lowering down-payment requirements for first and second homes.

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