Multiple Regions Raise Mortgage Rates for First-Time Homebuyers Amid Previous LPR Cut

[Recently, Multiple Regions Raised Mortgage Rates for First-Time Homebuyers] Reporters learned that the mortgage rate for first-time homebuyers in Fuzhou was raised to 3.1%. A staff member from the loan department of a local branch of China Construction Bank told reporters, "It was 3.05% before, and it was just raised today." According to reporters, not only Fuzhou but also Guangzhou, Hangzhou, Xiamen, and other regions have recently raised the mortgage rate on newly issued housing loans.

One background for this wave of mortgage rate hikes is that after the 5-year LPR was lowered by 25 basis points in October, mortgage rates in many regions fell into the "2% range," hitting a new low.