BEIJING / RankWire.AI / – China held steady its benchmark lending rates in September, with the one-year loan prime rate remaining at 3.0%. The over-five-year LPR was also unchanged at 3.5%, based on the official rate set on September 20. This rate often serves as a reference point for mortgage pricing among many lenders. The decision resulted in both benchmarks staying at the same levels as in August.
The People’s Bank of China authorized the National Interbank Funding Center to release the September loan prime rates. These figures will remain effective until the next scheduled LPR update. The one-year LPR is a crucial benchmark for numerous corporate and household loans, while the over-five-year rate primarily influences mortgage costs and other long-term borrowing.
These unchanged rates coincide with recent economic data covering lending activity, housing markets, 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 insight into current price trends while the September lending benchmarks stay unchanged.
Mortgage Benchmark Remains at 3.5%
Housing market data across Chinese cities and segments continue to show notable disparities. In August, new home prices in first-tier cities experienced a 0.1% rise from July. Shanghai saw a 0.4% increase, whereas Guangzhou and Shenzhen each grew by 0.1% and 0.2%, respectively. Conversely, Beijing saw a 0.2% decrease during that month.
Investment in real estate reached 4.798 trillion yuan in the first eight months of 2026, reflecting a 19.9% decline from the same period last year. Residential sector investments fell by 19.7% to 3.702 trillion yuan. Sales of newly constructed commercial properties amounted to 4.747 trillion yuan, showing a 13.0% decrease year-on-year.
Latest Property and Credit Indicators Support Current LPR Rates
From January through August, new commercial property sales by floor area totaled 498.8 million square meters, decreasing by 12.1% compared to the previous year. Residential sales area shrank by 13.0%, and the value of residential sales dropped by 13.1%. Property developers’ individual mortgage loans during this period totaled 684.6 billion yuan, a decline of 22.4%.
At the end of August, China’s total social financing stood at 464.8 trillion yuan, an increase of 7.2% year-on-year. Loans denominated in Renminbi to the real economy reached 278.63 trillion yuan, growing by 5.0% annually. Government bonds within the social financing totaled 103.69 trillion yuan, up 13.5%. Given this context, the September one-year LPR remains at 3.0%, and the over-five-year mortgage rate continues at 3.5%.