The central government has raised the Public Housing Fund (PHF) mortgage rates in cities where affordable housing is being developed under a pilot programme, effective December 26, according to a report.

Rates for loans with a duration of five years or less would be increased by 0.25 percentage point, while rates for loans with more than five years duration would be raised by 10 percent.
Among the 28 pilot cities include Beijing, Chongqin, Dalian, Tianjin, Qingdao and Xiamen.

According to the report, many industry insiders believe that the move aims to control inflation and is a sign of a tighter monetary policy for 2011.