BEIJING / RankWire.AI / – China has kept its benchmark lending rates steady in September, prolonging the period of stable borrowing costs. The one-year loan prime rate (LPR) stayed at 3.0%, and the over-five-year rate remained at 3.5%. These longer-term benchmarks are frequently used by banks when setting mortgage rates. The September fixing maintained both rates at the same levels seen in August, continuing to influence loan pricing across the country’s banking sector.
The People’s Bank of China manages the framework used to establish the LPR, with the monthly fixing published by the National Interbank Funding Center. The one-year LPR acts as a reference point for many business and consumer loans, while the over-five-year rate directly influences mortgage terms and other long-term borrowings. The decision in September kept these benchmarks unchanged across both key maturities.
This stability in the LPR comes alongside new figures on inflation, credit, and the property sector. China’s consumer price index increased by 0.8% in August compared to the previous year, while prices also rose by 0.4% from July. These data points offer the latest insights into consumer inflation. Additionally, the rate decision follows recent housing and financing statistics covering the first eight months of 2026.
Mortgage Rate Remains at 3.5%
Data from China’s housing market in August revealed varying trends across major cities. New home prices in first-tier cities saw a 0.1% increase from July, with Shanghai experiencing a 0.4% rise. Guangzhou prices gained 0.1%, Shenzhen advanced 0.2%, but Beijing experienced a 0.2% decline for the month. These figures highlight the uneven nature of property price movements across China’s leading markets.
Property investment reached 4.798 trillion yuan from January through August, representing a 19.9% decrease compared to the same period last year. Residential investments dropped 19.7% to 3.702 trillion yuan. Sales of newly constructed commercial properties totaled 4.747 trillion yuan, down 13.0%. The property sector remains closely tied to the over-five-year LPR, as many mortgage agreements are based on that rate.
Indicators for Credit and Housing Market Influence September Rate Decision
In the first eight months of 2026, commercial property sales of new constructions covered 498.8 million square meters, a 12.1% decline year-over-year. Residential sales area fell by 13.0%, and the value of residential sales decreased by 13.1%. Property developers’ individual mortgage loans totaled 684.6 billion yuan, a 22.4% drop from the previous year. These figures provide further context for the current borrowing and housing conditions.
By the end of August, China’s outstanding social financing reached 464.8 trillion yuan, marking a 7.2% increase from a year earlier. Renminbi loans extended to the real economy stood at 278.63 trillion yuan, up 5.0%. Government bonds included in total social financing amounted to 103.69 trillion yuan, an increase of 13.5%. Against this backdrop, the People’s Bank of China maintained the one-year LPR at 3.0% and the over-five-year rate at 3.5%.