Chinese local governments may phase out mortgage rate floors for first-time homebuyers in some cities, the central bank said on Thursday, in a bid to revive its housing market and revive the engine of the second. largest economy in the world.
Localities will be able to decide whether to maintain, reduce or eliminate the floor on mortgage rates for first-time buyers until the end of 2022, the People’s Bank of China (PBOC) said in a statement on its website.
For cities where the sale price of new residential homes saw monthly and yearly declines between June and August 2022, the lower bound on mortgage rates would be relaxed, the central bank said.
“The introduction of such policies and measures is conducive to supporting governments in cities to make full use of the policy toolbox to promote the stable and healthy development of the housing market,” the central bank said.
In May, China lowered its mortgage rate floor for first-time homebuyers.
Source: CNN Brasil
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