China Moves to Cut Mortgage Rates to Revive Housing Market
The plan underscores Beijing’s determination to end the prolonged housing rout that’s dragged on growth in the world’s second-largest economy.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China took steps to lower borrowing costs on as much as $5.3 trillion in mortgages for millions of families in its latest attempt to shore up the troubled property sector.
Homeowners will be able to renegotiate terms with their current lenders effective Nov. 1, the People’s Bank of China said in a statement late Sunday. Those who chose fixed mortgage rates can also renegotiate new loans based on the latest loan prime rate, a reference rate for mortgage loans, according to the statement.