New mortgage applications drop 15.7% MoM in December

Applications went down to 10,810 from 12,828 in November.

New mortgage applications dropped by 15.7% in December 2021 to 10,810, data from Hong Kong Monetary Authority showed.

In November 2021, the number of applications reached 12,828.

The number and value of mortgage loans approved in December were also lower than November, declining by 11.1% month-on-month (MoM) to 9,000 and 13.7% MoM to $44.3b, respectively.

Financing for the primary market (37% to $8.8b), secondary market (5.2% to $24.7b), and refinancing (4.3% to $10.8b) all decreased in December 2021, as well.

This pushed the value of mortgage loans drawn down during December up by 8.8% to $36.3b.

The ratio of new mortgage loans priced with reference to HIBOR decreased to 97.2% in December; with reference to best lending rates, however, the ratio increased to 1.2%.

Meanwhile, the outstanding value of mortgage loans increased by 1% MoM to $1,736.4b.