Meridian: In December 2024, the MMI report is 3.62%, marking a consecutive 7-month decline and hitting a 17-month low.

According to the latest data from the mReferral Mortgage Brokerage Services Referral Research Department, the mReferral Mortgage Brokerage Services Interest Rate Index (MMI) for December 2024, which reflects the actual interest level that new mortgage customers can generally achieve, is currently at 3.62%, a decrease of 16 basis points from the previous month and a continuous decline for 7 months, reaching a 17-month low. Caodaoming, Chief Vice President of mReferral Mortgage Brokerage Services, stated that last year, the Hong Kong Interbank Offered Rate (HIBOR) remained high for a month, causing the actual interest rate to continuously reach its peak. However, in November of last year, Hong Kong banks decreased the Best Lending Rate (P) by 1/4 basis point, leading to a decrease in the MMI for December. With Hong Kong banks lowering the Best Lending Rate by 1/8 basis point for the third time in December, the interest rates for new mortgages in banks have further dropped to around 3.5%, indicating that the MMI still has room for further decrease. Caodaoming continued to point out that in December last year, the core Consumer Price Index (CPI) in the US reported 3.2%, lower than market expectations, which boosted expectations for interest rate cuts. However, the overall CPI was 2.9%, with a monthly increase of 0.2% for 3 consecutive months. With the strong US employment data, the latest unemployment rate was 4.1%, decreasing by 0.1% monthly. It is believed that the Federal Reserve will assess the inflation trend and overall economic environment to determine the pace of interest rate cuts this year. In Hong Kong, the one-month HIBOR today is reported at 3.92%, decreasing for 7 consecutive working days, reaching a new low of nearly 4 months since September 23rd last year (3.74%). Caodaoming predicts that the one-month HIBOR in the first quarter will continue to hover in the range of 3.5% to 4%. If the US cuts interest rates within the year, Hong Kong banks will adjust their interest rates according to their own business strategies, and it is not ruled out that they will follow suit and decrease the Best Lending Rate (P).