As China established a dynamic mortgage rate adjustment mechanism on mortgage rates for first-time home buyers, more and more cities cuts the interest rates of housing loans after the spring festival.

On Sunday, a staff member of a bank in Zhengzhou, central China's Henan Province said that the bank had received notice of lowering the interest rates of commercial individual housing loans from 4.1 percent to 3.8 percent, and some banks were waiting for formal execution notice, according to Yicai, China's financial media outlet.

Earlier, South China's Guangdong province announced that it would cancel the lower limit of interest rates of commercial individual housing loans for the first house from Jan. 18, 2023.

Since China's central bank and the banking and insurance regulator established the dynamic adjustment mechanism, at least 12 cities across the country have adjusted the mortgage rates for first-time home buyers, data from China Index Academy said.

A report released by Beike Research Institute pointed out that with the establishment of the adjustment mechanism, mortgage rate adjustment would be more frequent in the future.

In the short term, it is expected that more qualified second, third, and fourth-tier cities will reduce mortgage rates lower limit to less than four percent, said Chen Wenjing, market research director at the Index Division of the China Index Academy.