September mortgage loans drop 6.4% to $13.8bn

Yet approvals for primary market transactions surged 2.6% to $2.6bn.

New mortgage loans drawn down in September fell 6.4% to $13.8 billion compared with August, the Monetary Authority announced Friday.

New loans approved in September fell 7.5% to $14.6 billion compared with August.

Approvals for primary market transactions rose 2.6% to $2.6 billion while secondary market transactions fell 6% to $9.9 billion.

Refinancing approvals fell 22.2% to $2.2 billion and the number of new applications in September fell 4.8% compared with August to 9,218. The figures reflect an overall decline in transaction volume, according to a government report.

New mortgage loans priced with reference to best lending rates rose from 42.1% in August to 51.3% in September, with the largest portion priced at a rate of less than 2.25%.

New mortgage loans priced with reference to Hong Kong Interbank Offered Rate fell to 46.2% in September.