China Orders Banks to Cut Mortgage Rates to Stabilize Housing Market

The People's Bank of China mandates rate reductions on existing mortgages to ease financial burdens and revive the property sector.

Commercial banks must lower interest rates on existing mortgages by October 31, 2024, to at least 30 basis points below the Loan Prime Rate.
The new policies aim to alleviate the financial burden on households affected by the slowing economy and cautious consumer sentiment.
The minimum down payment ratio for first and second homes will be reduced to no less than 15 percent.
Financial institutions will receive increased funding to support local state-owned enterprises in acquiring unsold commercial housing for affordable housing.
The measures follow a series of property stimulus efforts that have struggled to boost sales and liquidity in China's crisis-hit real estate market.