SHANGHAI, China - China has raised mortgage interest rates and increased the downpayment needed for loans to finance purchases of second homes in a move aimed at countering property speculation that is driving up prices. Property prices jumped 8.2 % in August from a year earlier after gaining 7.5 % in July. The rate of increase in China's major cities, such as Shanghai and Beijing, has been even steeper. The mortgage lending rate for both commercial purchases and for second residential properties was raised to 1.1 times benchmark lending rates. China's benchmark one-year lending rate is now 7.29 %, so the new rate would be 8.019 %.
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