The average mortgage loan interest rate for a first home in China in December was 5.68%, a decrease of 0.53% from the previous month. This is the first time the average interest rate has fallen in 23 months, according to data released by Rong360 Big Data Institute, China News Service reported.

It was recently reported that the mortgage interest rate is easing, especially in first-tier cities.

According to Rong360, there were 17 cities where the mortgage interest rate for first homes fell in December, including the major population centers of Beijing, Shanghai, Guangzhou and Shenzhen, and most second-tier cities.

This compared to November when two out of the four major cities –Guangzhou and Shenzhen – saw the rate decline.

Yan Yuejin, the research director of Shanghai E-House Real Estate Research Institute, said after the central bank cuts the reserve requirement ratio for banks, banks’ loan policies will be looser. This will be good news for those seeking development and personal mortgage loans, and even loans in the rental market, said Yan, adding that it will help to boost transactions.