Chinese banks raise mortgage rates for first time since 2021

Chinese banks have raised the cost of new mortgages for the first time in three years, according to new data from a research firm, as profit margins suffer from a continued slump in the property market and a slowdown in the world’s second-largest economy.

The average mortgage rate for first-time buyers in 42 major cities was 3.08% in November, down from a record low of 3.05% the previous month and marking the first increase since October 2021, according to Data Motion International Trading.

The change is surprising given the ongoing three-year recession that has weighed on China’s economy, although sales have shown signs of improving after a stimulus package began in late September.