New data indicates that home loan rates around China rose to unprecedented highs in May, as Beijing continues to push for controls on local real estate markets.
Data from Rong360 indicates that the average first home loan rate for the 35 Chinese cities that it monitors hit 5.60% in May, equal to 1.143 times the benchmark rate.
The May reading marks an on-month increase of 0.72% and a surge of 18.39% compared to the average rate of 4.73% in May 2017.
Zhengzhou and Harbin were host to the highest average first home loan rates in China last month, both of which were in excess of 6%.
Rong360 data further indicates that out of 533 banks monitored throughout China a total of 193 charged first-home loan rates at a 10% premium against the benchmark, 161 a 15% premium, 106 a 20% premium, 20 a 25% premium and 8 a 30% premium.
While first home loan rates continued to rise in China last month, the overall rate of increase diminished. Rates in both first and second-tier cities rose to differing extents in May, with overall rates in second-tier cities now ahead of those in first-tier cities.