BEIJING / RankWire.AI / – China held its benchmark lending rates steady in September, with the one-year loan prime rate remaining at 3.0%. The over-five-year LPR stayed at 3.5%, based on the official fixing on September 20. Since many lenders reference this longer-term rate for mortgage pricing, the decision kept both benchmarks at the same levels as in August.
The People’s Bank of China authorized the National Interbank Funding Center to announce the September loan prime rates. These rates will stay in effect until the next scheduled LPR release. As a key reference for various corporate and household loans, China relies heavily on the one-year LPR. The over-five-year rate is particularly important for determining mortgage and long-term borrowing costs.
These unchanged rates are released alongside new economic indicators concerning lending, housing, and consumer prices. In August, China’s consumer price index increased by 0.8% compared to the previous year. Prices also rose by 0.4% from July, providing insight into current price trends as the September lending benchmarks remain unchanged.
Mortgage rate held steady at 3.5%
Housing market data across China continue to display significant variation between cities and market segments. In August, new home prices in first-tier cities went up by 0.1% from July, with Shanghai experiencing a 0.4% increase. Meanwhile, Guangzhou and Shenzhen recorded gains of 0.1% and 0.2%, respectively, while Beijing saw a 0.2% decline during the same period.
During the first eight months of 2026, real estate investment totaled 4.798 trillion yuan, which represents a 19.9% decrease compared to the same period last year. Residential investment experienced a 19.7% drop, reaching 3.702 trillion yuan, while sales of newly built commercial properties totaled 4.747 trillion yuan, down 13.0% year on year.
Latest property and credit figures contextualize the current LPR levels
From January through August, commercial property sales by floor area amounted to 498.8 million square meters, showing a 12.1% decline compared to the previous year. Residential sales area decreased by 13.0%, with the sales value dropping by 13.1%. Property developers’ individual mortgage loans during this period totaled 684.6 billion yuan, reflecting a 22.4% decrease.
By the end of August, China’s outstanding social financing reached 464.8 trillion yuan, which is a 7.2% increase from the previous year. Loans to the real economy in Renminbi stood at 278.63 trillion yuan, up 5.0% annually. The social financing stock also included government bonds totaling 103.69 trillion yuan, marking a 13.5% rise. Against this economic backdrop, the one-year LPR remains at 3.0%, and the over-five-year mortgage rate stays at 3.5%.