Historic Low Rates
The weighted average interest rate for newly issued personal housing loans stood at approximately 3.1% in July 2026, according to data from the People's Bank of China released on August 14. This represents the historically lowest level recorded, essentially flat year-on-year.
Corporate Borrowing Costs
Corporate borrowers also benefited from accommodative credit conditions. The weighted average rate for newly issued corporate loans was "slightly below 3%" in July, down approximately 0.2 percentage points from the same period last year.
Rate Trajectory
| Loan Type | July 2026 Rate | YoY Change |
|---|---|---|
| Personal housing loans | ~3.1% | Flat |
| Corporate loans | Below 3% | -0.2 pp |
Policy Context
The PBOC noted that loan rates have remained at low levels throughout 2026 and continued to trend downward in July. The accommodative pricing reflects the central bank's efforts to support housing demand and corporate investment amid the property sector's ongoing adjustment. Low mortgage rates are a key pillar of government policy to stabilize the housing market and encourage home purchases, particularly for first-time and improvement-oriented buyers.