China's central bank announced on Monday that its benchmark Loan Prime Rate (LPR) remains unchanged this month, signaling steady economic maneuvering as new housing policies take center stage. The one-year LPR stays at 3.45%, while the over-five-year rate holds at 3.95% – matching April’s figures.
🔍 Analysts highlight a *decoupling trend*: mortgage rates are increasingly independent of the over-five-year LPR, says Zou Linhua from the Chinese Academy of Social Sciences. This shift comes days after Beijing unveiled \"historic\" reforms for the real estate sector, including abolishing mortgage floor rates and lowering minimum down payments.
🏠 What's next? Zou predicts most cities could see mortgage rates dip to around 3.4% – think of it as a financial 'soft landing' for homebuyers. But cities already near this threshold might hit pause on further cuts.
💡 Why it matters: These moves aim to balance housing supply/demand and stabilize prices. \"It's like hitting refresh on market expectations,\" Zou explains, comparing the strategy to buffering a livestream – smoothing disruptions for better long-term performance.
