China's benchmark lending rate remains unchanged in May, announced the central bank on Monday.

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, comes in at 3.45 percent, and over-five-year LPR at 3.95 percent, both unchanged from the previous month, said the National Interbank Funding Center.

Zou Linhua from the Chinese Academy of Social Sciences noted the decreasing correlation between the over-five-year LPR and mortgage interest rates.

China announced a slate of heavyweight measures last Friday for the real estate sector to boost the housing market and foster sustained development within the industry.

Read more: China's 'historic' real estate policies to invigorate sector and promote steady development: Experts

Zou said that the abolishment of mortgage floor rates creates room for cutting mortgage rates and further reduces the minimum down payment ratios.

"It can play a positive role in stabilizing housing prices, balancing supply and demand, and improving real estate market expectations," she added.

Zou predicted that mortgage rates are expected to fall to around 3.4 percent in most cities in China. However, cities already at this level have limited room for further reducing mortgage rates.