The value of residential mortgage loans approved in July was $ 21.8 billion, a 12.2% drop compared with July, the Monetary Authority announced today.

Mortgage loans financing primary market transactions dropped 11.7% to $7.6 billion, while those financing secondary market transactions decreased 13.7% to $11.8 billion.

Loans for refinancing surged 5.6% to HK$2.5 billion.

Mortgage loans drawn down during August amounted to $15.9 billion, a 2.9% reduction from July.

The number of mortgage applications in August dipped 12.2% month-on-month to 5,919.

The outstanding value of mortgage loans increased month-on-month by 0.1% to $1.8703 trillion at the end of August.