China Mortgage Stock Falls to Lowest Since 2021 as Demand Cools
- Decline shows households are refraining from borrowing
- Weak confidence threatens to put 5% growth target out of reach
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China’s stock of mortgages contracted to the lowest level in nearly three years, underscoring weak confidence in the property sector that’s weighing on growth.
The amount of outstanding mortgages fell to 37.8 trillion yuan ($5.3 trillion) at the end of June, the lowest since September 2021, according to data published by the People’s Bank of China on Friday. That’s about 3% less than their peak at the beginning of 2023, indicating that households had repaid more debt than they had taken out since then.