China Cuts Mortgage Rates to Counter Collapse in Home Sales
- Interest rate on loans for first homebuyers cut nationwide
- PBOC acts to support housing market and economic demand
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China’s central bank effectively cut the interest rate for new mortgages in an attempt to prop up the ailing housing market and boost the slowing economy.
The Sunday announcement from the People’s Bank of China means that first-home buyers will be able to borrow money at an interest rate as low as 4.4%, down from 4.6% previously. The change is aimed at supporting housing demand and will “promote the stable and healthy development of the property market,” the PBOC said.