The Hong Kong Monetary Authority (HKMA) has published the results of its residential mortgage survey for July 2024, revealing several key trends in the market.

Increase in Mortgage Applications

According to the HKMA, the number of mortgage applications in July 2024 saw a month-on-month increase of 0.7%, reaching a total of 6,740 applications. This slight uptick indicates a steady demand for residential mortgages in the region.

Approval and Loan Trends

Mortgage loans approved in July grew by 1.5% from the previous month, amounting to HK$24.8 billion. Of these, loans for primary market transactions increased by 0.7% to HK$8.6 billion. However, loans for secondary market transactions saw a minor decline of 1%, totaling HK$13.7 billion. Notably, mortgage loans for refinancing surged by 21.5% to HK$2.5 billion.

Drawdowns and Interest Rates

Despite the increase in approvals, the actual drawdown of mortgage loans in July fell by 32.3% compared to June, amounting to HK$16.4 billion. The ratio of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) slightly decreased from 90.4% in June to 89.8% in July. Conversely, the ratio of new mortgage loans priced with reference to best lending rates rose from 4.3% in June to 4.6% in July.

Outstanding Loans and Delinquency Ratios

The outstanding value of mortgage loans experienced a marginal increase of 0.1%, reaching HK$1,868 billion by the end of July. Meanwhile, the mortgage delinquency ratio remained stable at 0.1%, and the rescheduled loan ratio continued to hover near 0%.

For more detailed information, the complete survey results can be accessed on the Hong Kong Monetary Authority website.

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