Mortgage applications dip 3.6% in June

But loans approved increased 3%.

The number of mortgage applications dropped 3.6% to 15,326 in June, compared to the previous month, the Hong Kong Monetary Authority reported.

Mortgage loans approved in the same month increased 3% month-on-month to $58.4b.

Of which, mortgage loans financing secondary market transactions accounted for $39.2b, even as it decreased 3.3% month-on-month (MoM).

Those financing primary market transactions rose 15.9% to $8.4b, whilst refinancing went up by 21.6% to $10.8b.

Mortgage loans drawn down during the month increased by 9.5% to HK$39.1b.

The ratio of new mortgage loans priced with reference to Hong Kong Interbank Offered Rate or HIBOR decreased to 96.4% in June from 96.8% in May.

The ratio of new mortgage loans priced with reference to best lending rates increased to 1.4% in June from 1% in May.

The outstanding value of mortgage loans increased MoM by 1% to HK$1.64b at end-June.

The mortgage delinquency ratio remained unchanged at 0.04% and the rescheduled loan ratio remained unchanged at nearly 0%.