Home loan rates in the Chinese capital of Beijing have dropped beneath the 5% threshold following a fall in the country’s benchmark loan prime rates (LPR’s).
First home loan rates in the Beijing area have fallen to 4.85% from 5% previously, according to a 23 August report from Caishelian. Second home loan rates have also fallen, declining to 5.3% from 5.5%.
The decline in Beijing’s home loan rates arrives in the wake of a fall in China’s LPR’s for the month of August.
The loan prime rates (LPR’s) announced by China’s National Interbank Funding Center (全国银行间同业拆借中心) on 22 August were 3.65% for the 1-year LPR and 4.3% for the 5-year LPR.
The 1-year LPR fell 5 basis points compared to the print of 3.7% in July, while the 5-year LPR marked a reduction of 15 basis points compared to the print of 4.45% last month.