Downward trend: September saw $11.5 billion new mortgage loans approved, down 9.1% on August.

September saw $11.5 billion new mortgage loans approved, down 9.1% on August, while new mortgage loans drawn down rose 15.2% to $9.7 billion, the Monetary Authority says.

The approvals for secondary market transactions recorded a 14.9% drop in value, down $1 billion, while the approvals for refinancing fell 16.2%, down $400 million.

These falls more than offset the $300 million increase (up 11.1%) in approvals for primary market transactions. The number of new applications also dropped 10.4%.

The proportion of new loans approved at more than 2.5% below the best lending rate fell to 55.9% from 58.4% in August. The proportion of new approvals priced with reference to rates other than the best lending rate or fixed rates rose to 35.9% from 32.8% in August.

The outstanding value of mortgage loans fell 0.1% to $526.1 billion.