China Extends Easing of Mortgage Rates on First Home Purchases

Saddled with a slumping property market, China is extending measures introduced in September that allow lower mortgage rates for first-home buyers if newly constructed house prices drop for three consecutive months.

Cities are eligible to maintain, lower or remove minimum interest rates on loans for first home purchases, according to a statement from the central bank and banking regulator Thursday evening. The measures will “form a long-term mechanism to support a stable and healthy property market,” they said.