"HK Property" Meridian: Last month's MMI reported 3.25 cents, hitting a five-month low, expected to hover between 2 to 3 cents in the first half of the year

According to the latest data from the Mortgage Referral Research Department, the Mortgage Rate Index (MMI) for December 2025, which reflects the actual interest rate level that new mortgage customers can generally achieve, is reported at 3.25%, a monthly decrease of 6 basis points, marking a three-month decline and reaching a five-month low. Cao Deming, Chief Vice President of Mortgage Referral, stated that most new mortgage owners tend to choose the H mortgage plan, while local banks lowered the prime rate (P) in September and October of last year by a total of 1/4%, causing the new H mortgage capped interest rate to fall back to the current 3.25%, leading to a decline in MMI.

Cao Deming indicated that the U.S. labor market has not accelerated in deterioration, and it is expected that the Federal Reserve will remain steady at next week's interest rate meeting. In Hong Kong, today (23rd), the one-month HIBOR is reported at 2.79%, and the trend of HIBOR will depend on U.S. interest rates and capital flows. It is expected that HIBOR will fluctuate between 2% and 3% in the first half of the year, and the actual interest rate for new H mortgages will remain at 3.25%. If there is further capital inflow into Hong Kong, HIBOR may have the opportunity to challenge levels below 2%, at which point H mortgage owners may have the chance to borrow at rates lower than the capped interest rate, and MMI may also have the opportunity to adjust downward