First Home Loan Rates in China Drop to Lowest Levels Since 2018


In May average home loan rates in China fell to their lowest levels since the end of last year.

The average national first home loan rate in China was 5.42% for the month of May according to a report from the Rong360 Big Data Research Academy, for a YoY decline of 3.27%.

The May reading was equal to 1.105 times the benchmark rate, while also marking a decline of 1.09% compared to the preceding month.

“Overall, the wave of downward adjustment in home loan rates has already approached its end, but we cannot rule out further declines in average national home loan rates” said Li Wanfu (李万赋), Rong360 analyst.

First-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen saw modest first home rate declines in May, while there was greater differentiation amongst second-tier cities.

Xiamen, Shanghai and Tianjin were host to the lowest average first home loan rates, at 4.90%, 4.92% and 4.93% respectively. All ten of the Chinese cities with the lowest average first home loan rates were beneath the 5.30% threshold.