The value of new residential mortgage loans drawn down during June rose 24.5% to $12.5 billion, the Monetary Authority says. But new loans approved fell 6.4% to $12.9 billion.

The drop was due to falls of $907 million in approvals for secondary market transactions and of $21 million in approvals for primary market transactions, which more than offset the $53 million rise in approvals for refinancing. The number of new applications also fell 15.5%.

The most commonly used interest rate band for new approvals in June continued to be more than 2.5% below the best lending rate. It was used in 70.4% of new approvals in June compared with 65.3% in May.

The outstanding value of mortgage loans rose 0.3% to $527.3 billion.