Guess what, amigos? China's central bank just announced that its benchmark lending rates are staying put this May! 📢
On Monday, the National Interbank Funding Center revealed that the one-year loan prime rate (LPR) remains at 3.45%, and the over-five-year LPR is steady at 3.95%. No surprises there, but what's the buzz all about?
Zou Linhua, an expert from the Chinese Academy of Social Sciences, pointed out that the link between the over-five-year LPR and mortgage interest rates is getting weaker. 🤔 What does that mean for us?
Well, last Friday, China rolled out some major moves to pep up its real estate sector. They're aiming to boost the housing market and keep the industry growing strong. 🏡✨
Zou mentioned that ditching the mortgage floor rates opens up space to cut mortgage rates even more and lower the minimum down payment ratios. Cha-ching! 💰
\"It can play a positive role in stabilizing housing prices, balancing supply and demand, and improving real estate market expectations,\" Zou said. Sounds like good news for anyone looking to buy a home!
She also predicted that mortgage rates might drop to around 3.4% in most Chinese cities. But if your city is already there, don't expect further cuts. 📉
So, if you're keeping an eye on China's housing market, these developments could signal some exciting times ahead! Stay tuned! 🇨🇳
Reference(s):
cgtn.com
