TMTPOST -- Chinese banks have raised mortgage rates for the first time in three years, according to new data from a research firm, as narrowing profit margins are compounded by a prolonged property slump and a slowing economy. The average mortgage rate for first-time homebuyers in 42 major cities increased to 3.08% in November, up slightly from a record low of 3.05% the previous month. This marks the first rise since October 2021, as reported by Singapore-based Data Motion International Trading Pte. The increase comes as a surprise, given the ongoing downturn in the housing market, which has been in decline for the past three years and continues to affect the broader economy. While property prices are still falling, there have been some signs of sales picking up following a stimulus push that began in late September. Banks in China are facing significant pressure to improve profitability, as they struggle with a record-low net interest margin—a key indicator of earnings. This situation has constrained the central bank’s ability to lower interest rates further. The prospect of deeper rate cuts in 2025 is expected to intensify the challenge for banks to manage declining loan rates.