BEIJING / RankWire.AI / – China kept its benchmark lending rates steady in September, holding the one-year loan prime rate at 3.0%. The over-five-year LPR also remained at 3.5%, according to the official September 20 fixing. Many lenders reference this longer-term rate when setting mortgage prices. The decision kept both lending benchmarks at the same levels recorded in August.
The People’s Bank of China authorized the National Interbank Funding Center to publish the September loan prime rates. These new figures will stay in effect until the next scheduled LPR release. In China, the one-year LPR serves as a critical reference for numerous corporate and household loans, while the over-five-year rate is central to mortgage and other long-term loan pricing.
This unchanged rate setting coincides with recent economic data covering lending activities, housing markets, and consumer prices. China’s consumer price index increased by 0.8% compared to August last year. Prices also rose by 0.4% from July. These figures offer a snapshot of current price trends, even as the September lending benchmarks remain unchanged.
Mortgage rate stays at 3.5%
Housing data across Chinese cities and segments continue to show significant variation. In August, first-tier cities experienced a 0.1% rise in new home prices compared to July. Shanghai saw a 0.4% increase month-on-month, while Guangzhou and Shenzhen gained 0.1% and 0.2%, respectively. Beijing, however, recorded a 0.2% decline during the same period.
Total investment in real estate reached 4.798 trillion yuan in the first eight months of 2026, reflecting a 19.9% decrease from the same period last year. Residential investment declined by 19.7% to 3.702 trillion yuan. Meanwhile, sales of newly constructed commercial properties totaled 4.747 trillion yuan, representing a 13.0% year-on-year drop.
Latest property and credit figures align with current LPR rates
From January to August, new commercial property sales by floor area reached 498.8 million square meters, down 12.1% compared to the same period in 2025. Residential sales area decreased by 13.0%, and residential sales value fell by 13.1%. Property developers’ individual mortgage loans amounted to 684.6 billion yuan, a decline of 22.4% during this period.
By the end of August, China’s outstanding social financing stood at 464.8 trillion yuan, growing 7.2% year-on-year. Renminbi loans to the real economy reached 278.63 trillion yuan, an increase of 5.0% annually. The social financing stock included 103.69 trillion yuan in government bonds, up 13.5%. In this context, the September one-year LPR remains at 3.0%, and the over-five-year mortgage rate stays at 3.5%.
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