China is issuing nationwide guidance on the easing of mortgage rules; issuing detailed rules for conditions to qualify for first-home mortgage rates
Mortgage rates depends on the number of homes owned, rather than the previous mortgage record.
Reaction details (06:57)
- An update which pressured USD/CNH from 7.2900 to 7.2820 and sparked some modest upside in 3-month LME Copper lifted from USD 83.51/T to a USD 83.82/T session high.
Analysis details (06:53)
- Follows reports in recent weeks/months that China was mulling taking such measures, in order to remove hurdles that have limited demand within Beijing and Shanghai, for instance.
- In July, SCMP reported that regulators were considering removing rules that disqualified those who have ever had a mortgage from being considered a first-time buyer in major cities.
- As a reminder the PBoC recently cut its 1yr LPR, by 10bp and left its 5yr LPR unchanged; the cut disappointed expectations as did the unchanged 5yr. Reminder, the 5yr is of note for the housing/mortgage market.
25 Aug 2023 - 06:50- ForexImportant- Source: Newswires
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