The Decrease in Mortgage Applications and Approvals in Hong Kong for June 2024 🏠
In June 2024, the Hong Kong Monetary Authority (HKMA) reported a significant decline in mortgage applications and approvals. The number of mortgage applications dropped by 17.2%, totaling 6,690, compared to the previous month.
Decline in Mortgage Loan Approvals
During the same period, mortgage loans approved decreased by 22.5%, amounting to HK$24.5 billion. Specifically:
– Loans for primary market transactions decreased by 25.6% to HK$8.6 billion.
– Loans for secondary market transactions declined by 21.3% to HK$13.8 billion.
– Loans for refinancing also saw a reduction of 16.6%, totaling HK$2.1 billion.
Increase in Mortgage Loans Drawn Down
Despite the drop in applications and approvals, the amount of mortgage loans drawn down in June surged by 46.9% from the previous month, reaching HK$24.3 billion.
Changes in Loan Pricing
According to the survey, there were notable changes in the pricing of new mortgage loans:
– The ratio of new loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased from 92% in May to 90.4% in June.
– Conversely, the ratio of new loans priced with reference to best lending rates increased from 3.5% to 4.3% during the same period.
Outstanding Mortgage Loans and Delinquency Ratio
By the end of June, the outstanding value of mortgage loans increased slightly by 0.6%, totaling HK$1,866.8 billion. Additionally:
– The mortgage delinquency ratio experienced a minor uptick to 0.1%.
– The rescheduled loan ratio remained nearly unchanged at 0%.
For more detailed information, refer to the official report by the Hong Kong Monetary Authority.
Hot Take: Understand the Impact of Decreasing Mortgage Applications and Approvals 📉
As a crypto investor, staying informed about the changing landscape of mortgage applications and approvals in Hong Kong can provide valuable insights into the overall economic health of the region. The significant decline in both metrics signals potential challenges in the real estate market, which could have ripple effects on other sectors as well.
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