HKMA's July statistics reveal mortgage loan approvals sliding down 8.8%

Blame it on sharp decline in primary market financing.

According to Barclays, the July mortgage survey showed that mortgage loan approvals declined in July 2015 down by 8.8% m/m to HK$27.7bn due to a sharp decline in primary market financing (-24.6% m/m) and refinancing (-11.4% m/m), while secondary transactions were largely flat(+0.6% m/m).

Barclays also said that new mortgage loans drawn down grew by 43.6% m/m to HK$27.7bn.

Outstanding mortgages increased 1.3% m/m as new mortgage loans booked offset principal repayments. Hibor-based mortgage accounted for 84.5% (June: 85.8%) of new mortgages approved. The average system mortgage rate was stable at 2.26% based on our calculations.