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%, based on the official September 20 fixing. Many lenders reference the longer-term rate for mortgage pricing, and this decision kept both benchmarks unchanged from August levels.
The People’s Bank of China authorized the National Interbank Funding Center to release the September loan prime rates, which will stay valid until the next scheduled update. China relies heavily on the one-year LPR as a key reference for numerous corporate and household loans, while the over-five-year rate is essential for mortgage and longer-term borrowing costs.
These stable rates coincide with new economic data covering lending activities, housing market trends, and consumer prices. In August, China’s consumer price index increased by 0.8% compared to the previous year, and consumer prices rose by 0.4% from July. These figures offer a snapshot of current price movements as the September LPR figures remain unchanged.
Mortgage benchmark unchanged at 3.5%
Housing market data continue to reveal significant variation across different cities and market segments. In August, new home prices in first-tier cities increased by 0.1% from July, with Shanghai experiencing a 0.4% rise, Guangzhou and Shenzhen gaining 0.1% and 0.2%, respectively, while Beijing saw a 0.2% decline.
Total real estate investment for the first eight months of 2026 was 4.798 trillion yuan, marking a 19.9% decrease compared to the same period last year. Residential investment dropped by 19.7% to 3.702 trillion yuan, and sales of newly constructed commercial properties amounted to 4.747 trillion yuan, down 13.0% year-on-year.
Latest property and credit figures support current LPR levels
Between January and August, commercial property sales by floor area totaled 498.8 million square meters, representing a 12.1% decrease from the previous year. Residential sales area declined by 13.0%, and residential sales value fell by 13.1%. During this period, individual mortgage loans extended to property developers totaled 684.6 billion yuan, reflecting a 22.4% decrease.
At the end of August, China’s outstanding social financing reached 464.8 trillion yuan, an increase of 7.2% year-on-year. Renminbi loans to the real economy stood at 278.63 trillion yuan, up 5.0% annually. The social financing stock also included government bonds totaling 103.69 trillion yuan, which grew by 13.5%. Consequently, the September one-year LPR remains at 3.0%, and the over-five-year mortgage rate stays at 3.5%.