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China extends looser mortgage rate limits as home prices keep sliding

Beijing continues support for crucial real estate sector as economy struggles

A surge in COVID-19 cases has discouraged potential Chinese homebuyers from visiting apartment showrooms.   © Reuters

BEIJING -- China will let certain cities cut their mortgage rate floors beyond the central government's minimum, making permanent a previously temporary measure to curb a persistent slump in the housing market.

The move comes as an economic cooldown leaves would-be homebuyers uncertain about their future incomes, dampening expectations for price growth in a crucial sector of the economy. On top of this, few people are willing to venture out to condominium showrooms amid the surge in coronavirus infections touched off by the end of China's zero-COVID policy.

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