The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced the results of the residential mortgage survey for June 2016.
 
     The number of mortgage applications in June decreased month-on-month by 1.2% to 9 844.  

     Mortgage loans approved in June decreased by 3.2% compared with May to HK$22.3 billion.  Among these, mortgage loans financing primary market transactions decreased by 7% to HK$4.6 billion and those financing secondary market transactions increased by 2.1% to HK$12.6 billion.  Mortgage loans for refinancing decreased by 11.5% to HK$5 billion. 

     Mortgage loans drawn down during June increased by 15.8% compared with May to HK$17.8 billion. 

     The ratio of new mortgage loans priced with reference to best lending rates decreased from 6.9% in May to 4.9% in June, with the majority priced within the range of 2% and 2.25%. The ratio of new mortgage loans priced with reference to HIBOR increased from 85.8% in May to 89.8% in June.  The ratio of mortgage loans priced at fixed rates decreased from 5.3% in May to 3.9% in June.

     The outstanding value of mortgage loans increased month-on-month by 0.3% to HK$1,084.5 billion at end-June. 

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

Ends/Friday, July 29, 2016
Issued at HKT 16:30

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