Hong Kong's three major note-issuing banks maintain the optimal loan interest rates unchanged, and the industry is expecting that interest rates will be difficult to decrease in the short term.

The Federal Reserve announced to keep the benchmark interest rate in the range of 3.5% to 3.75%. The three major banks in Hong Kong maintained their best rates unchanged, with HSBC leading the way by announcing that their best rate would remain at 5%, followed by BOC HONG KONG (02388) and Standard Chartered Hong Kong also announcing to maintain their best rates at 5% and 5.25% respectively. Energy prices pushed up inflation numbers, and it is expected that the Federal Reserve will not have the opportunity to cut interest rates in the short term. Mr. Cao Deming, Vice President of mReferral Mortgage Brokerage Services in Hong Kong, stated that the current labor market in the United States is strong, with no signs of worsening unemployment rates. Due to geopolitical issues and the impact of energy prices on inflation numbers, the Consumer Price Index (CPI) in May increased by 4.2% year-on-year, the highest level in three years. It is expected that the Federal Reserve will not have the opportunity to cut interest rates in the short term. It is expected that there will be no significant decline in the short term in interest rates, and the HIBOR will remain at 3.25%. On the other hand, the one-month Hong Kong Interbank Offered Rate (HIBOR) today is reported at 2.94%. Mr. Cao Deming stated that based on the current general new H-plan calculation at H+1.3%, the HIBOR needs to fall below 1.95% for actual mortgage interest rates and monthly housing costs to further decrease. However, as the U.S. interest rates have not decreased, and the total system surplus in Hong Kong banks remains at around 53.9 billion Hong Kong dollars, there is relatively limited room for the HIBOR to significantly decrease. It is expected that the HIBOR will hover around 2% to 3% in the short term, and homeowners will still need to provide a maximum interest rate of 3.25% for housing. There are uncertainties in U.S. interest rates and monetary policies. Mr. Cao Deming urged prospective homeowners to have long-term financial arrangements in place, monitor interest rate trends before entering the market, avoid borrowing to the limit when applying for mortgages, reserve sufficient funds, and evaluate their ability to afford before entering the market. Mr. Cao Deming continued to point out that the current general new H-plan interest rate remains at 3.25%, which is a reasonable and affordable level. Choosing a large bank's first three-year fixed interest mortgage plan at 2.73% can save more interest expenses and indirectly reduce interest payments. In addition, with property prices stabilizing and transaction volumes significantly increasing, the confidence of citizens in homebuying and investment has also increased. It is expected that the property market will continue to show a pattern of "price and volume increase" in the second half of the year. Some banks are taking an aggressive approach to mortgage business, actively seeking annual mortgage business, and successively launching different types of mortgage plans and increasing mortgage rebate offers to attract high-quality customers. It is expected that the mortgage market will continue to grow as the property market stabilizes and recovers.