Mortgage lending growth in China is slowing amid ongoing downturn in real estate market, caused by defaults among developers, lockdowns and worsening consumer sentiment.The total volume of outstanding mortgage loans in China at the end of March was 53.2 trillion yuan ($8 trillion), rising by 6% compared to the same month of 2021 – the lowest pace since the start of tracking these data by the PBOC, in 2009.In 2021, the volume of mortgage loans in China grew by 7.9%.According to preliminary data from China Real Estate Information Corp., home sales by China’s top 100 property developers fell nearly 60% in April amid lockdowns in a number of major cities, despite easing of restrictions in the housing market in more than 60 cities in China.China’s average mortgage rate stood at 5.42% in March, down 17 basis points year-to-date, the PBOC said on Friday.China mainland Yuan has been declining for the third week in a row as the government tries to cushion the blow from devastating lockdowns by stimulating exports. USDCNY rallied 5% since April 15 and is expected to continue devaluation as the CCP pledged to boost support to the ailing economy.
Source: Tickmill
