Meridian: The Meridian Mortgage Interest Rate Index reported 3.18% in September, and it is expected that there will still be room for decline during the year

The Zhitong Finance App learned that according to the latest data from the Meridian Mortgage Referral Research Department, the Meridian Mortgage Interest Rate Index (MMI) for September 2026, which reflects the actual mortgage interest rate level that can generally be achieved by new mortgage customers, was 3.18%, a slight increase of 6 basis points from month to month. Cao Deming, chief vice president of Meridian Mortgage Referral, said that in September, about 20% and a half of customers chose fixed rate mortgage plans from large banks, and the proportion declined slightly from month to month. In addition, since that month, second-hand and remortgaged fixed interest rates were raised from 2.73% to 2.93%, so MMI also rebounded slightly.

Cao Deming anticipates that more customers will choose a fixed rate mortgage plan or a “P first then H” plan. Today's one-month HIBOR report is 2.75%. Cao Deming expects that the actual interest rate for newly built H mortgages will continue to peak at 3.25% during the year. Currently, two major banks have renewed their low interest mortgage plans until the end of this year. Although interest rates have been raised from 2.73% to 2.93%, they are still 32 basis points lower than the H limit.

Also, earlier, some large banks launched a “special priority post-P H” mortgage plan for the first 2 or 3 years. The annual interest rate is “P -2.32%”, that is, the actual mortgage interest rate is 2.68%, and the interest savings effect is even more remarkable. He said that in a situation where interest rates are still likely to rise in the future, and there is no room for a sharp decline in interest rates in the short term, it is expected that more customers will choose a fixed rate mortgage plan or P&H plan to instantly save more interest expenses. It is expected that MMI will still have room to fall back during the year.

Cho Deming added that there is no urgency to raise the best interest rate in Hong Kong yet. Although the US recently reported 3.7% CPI for September, which is higher than market expectations, the Federal Reserve made a defensive interest rate hike last month. It is expected that the Fed will stay on hold during this week's interest rate meeting, and tend to observe inflation and economic data trends before making the next decision. If the Federal Reserve chooses to stay on hold, and the interest rate is temporarily maintained below 3%, the Bank of Hong Kong believes that there is no urgency to raise the best preferential interest rate (P) for the time being without a significant increase in capital cost pressure.