Home Loan Rates in China Rise for the First Time in 2019

New data points to the first rise in Chinese home loan rates since the start of 2019.

The average first home loan rate in China was 5.423% in the month of June, for a slight rise compared to the reading of 5.416% for the previous month, according to figures released by the Rong360 Big Data Research Institute (融360大数据研究院) on 9 July.

The average pre-owned home loan rate in June was 5.75%, also ahead of the previous month’s reading of 5.74%.

Rong360’s data was based on 533 banking outlets spread across 35 Chinese cities.

The first home loan rates for 422 of these banks held steady in June compared to the previous month, accounting for 79.17% of the total.

66 banks lifted their rates in June, for an increase of 39 compared to May, while the number of banks dialing down their rates fell from 108 to 44.

Most second-tier cities showed signs of rising home loan rates in June, with the few exceptions including Dalian, Foshan and Wuhan.

“Those second-tier cities that reduced (rates) were mainly the result of banks adjusting home loan rates that previously high, and for the time being we have not found a new wave of concentrated downward adjustments,” said Li Wanfu (李万赋), Rong360 analyst.

Second-tier cities posting increases in their average home loan rates included Tianjin, Suzhou, Fuzhou, Ningbo and Naning.

Beijing and Shanghai saw slight declines in their average first home loan rates in June, from 5.39% to 5.37% and from 4.92% to 4.91% respectively.

Leave a Reply

Your email address will not be published. Required fields are marked *