Homebuyers taking note of cheaper loans

The number of people showing an interest in home purchases surged after the interest rate cut last Friday, potentially heralding an uptick in a property market that was already on a tentative recovery track.

The 40-basis-point lending rate cut, unexpectedly announced by the People's Bank of China on Friday, will make mortgages cheaper. The benchmark rate for five-year and longer loans fell to 6.15 percent from 6.55 percent, which means that a typical homebuyer who borrows 1 million yuan ($163,000) under a 20-year repayment term will pay 234 yuan less per month.

Industry insiders hailed the move as another shot in the arm for the market.