BEIJING / RankWire.AI / – China held steady its benchmark lending rates in September, with the one-year loan prime rate (LPR) remaining at 3.0%. Meanwhile, the over-five-year LPR stayed at 3.5%, based on the official September 20 fixing. Many financial institutions reference the longer-term rate when setting mortgage costs. This decision preserved both benchmarks at their August levels.
The People’s Bank of China tasked the National Interbank Funding Center with announcing the September LPR figures. These rates will be in effect until the next scheduled update. The one-year LPR serves as a critical benchmark for numerous corporate and household loans, while the over-five-year rate mainly influences mortgage and long-term loan pricing.
This stabilization in lending rates coincides with new economic data covering credit, housing, and inflation. China’s consumer price index increased by 0.8% compared to August of last year. Additionally, consumer prices rose by 0.4% from July. These figures reflect current price trends even as the September LPR levels remain unchanged.
Mortgage rate unchanged at 3.5%
Housing market data continue to show notable variation across different cities and segments. In August, new home prices in first-tier cities edged up by 0.1% compared to July. Shanghai experienced a 0.4% monthly increase, while Guangzhou and Shenzhen gained 0.1% and 0.2%, respectively. Conversely, Beijing saw a 0.2% decline during the same period.
During the first eight months of 2026, real estate investment in China totaled 4.798 trillion yuan, reflecting a 19.9% decrease compared to the same period last year. Residential investments dropped 19.7% to 3.702 trillion yuan. Sales of newly developed commercial properties amounted to 4.747 trillion yuan, representing a 13.0% year-on-year decline.
Latest property and credit figures align with current LPR rates
From January through August, newly sold commercial properties by floor area totaled 498.8 million square meters, down 12.1% from the previous year. Residential sales area decreased by 13.0%, while the value of residential sales fell by 13.1%. Property developers’ individual mortgage loans during this period reached 684.6 billion yuan, a reduction of 22.4%.
China’s total social financing reached 464.8 trillion yuan at the end of August, marking a 7.2% increase compared to the previous year. Loans in the Renminbi to the real economy stood at 278.63 trillion yuan, up 5.0% annually. Government bonds within the social financing stock amounted to 103.69 trillion yuan, showing a 13.5% rise. Against this backdrop, September’s one-year LPR remains at 3.0%, and the over-five-year mortgage rate stays at 3.5%.