New personal housing loan rates in China reached a historical low of 3.4% in July 2026, declining 9 basis points from the previous month and 68 basis points compared to the same period last year, according to data published by the People's Bank of China alongside its July financial statistics.
Historic Affordability for Home Buyers
The continued decline in mortgage rates reflects the cumulative impact of the PBOC's monetary easing cycle and the central government's explicit policy direction of reducing housing financing costs to support demand. At 3.4%, new personal housing loan rates are at their lowest level in recorded history, dramatically improving affordability for both first-time buyers and households seeking to upgrade.
The 68 basis point year-on-year decline means that on a 3-million-yuan, 30-year mortgage, monthly payments have declined by approximately 800-1,000 yuan compared to the same period last year — a meaningful reduction for ordinary households. The cumulative effect of multiple rate cuts over the past 18 months has materially shifted the affordability calculus for potential home buyers in major cities.
Enterprise Loan Rates Also at Record Lows
Corporate borrowing costs have similarly declined to historically low levels. The weighted average rate on newly issued enterprise loans stood at 3.65% in July — flat from the previous month but 22 basis points below the same period last year — placing it at or near historical lows. The combination of cheap household and corporate borrowing costs reflects the PBOC's commitment to maintaining accommodative financial conditions to support economic recovery.
The PBOC's Q2 Monetary Policy Implementation Report emphasized that financial institutions should evaluate support effectiveness from a broad financing perspective — encompassing bonds, government securities, and policy bank lending — rather than focusing narrowly on traditional bank loans alone. This broader framing acknowledges that the cost of capital across the economy has fallen substantially, even if traditional loan growth metrics appear subdued.