China's People's Bank of China announced today to improve the pricing mechanism of commercial individual housing loans, allowing the renegotiation of point additions for certain existing house loans under certain conditions, in order to reduce the interest rates of existing house loans. A proposal for self-discipline in market interest rate pricing has also been issued, requiring commercial banks to collectively adjust existing house loans that meet the conditions before October 31, 2024. For existing house loans with point additions higher than -30 basis points, the interest rates will be uniformly adjusted to no less than -30 basis points and not lower than the new point addition lower limit currently implemented in the respective city (if any), to bring the interest rates closer to those of the national new house loans, with an estimated average decrease of around 0.5 percentage points.
央行：首套、二套房存量房贷利率批量下调 平均降幅0.5%左右
The central banks: the first and second housing loans' existing house loan interest rates have been collectively lowered by an average of around 0.5%.
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