Meridian: The Meridian Mortgage Interest Rate Index remained flat at 3.17% month-on-month in July

The Zhitong Finance App learned that according to the latest data from the Meridian Mortgage Referral Research Department, the Meridian Mortgage Interest Rate Index (MMI) for July 2026, which reflects the actual interest rate level that can generally be achieved by new mortgage customers, was reported at 3.17%, which was flat on a monthly basis. Cao Deming, chief vice president of Meridian Mortgage Referral, said that in July, more than 20% and a half of customers chose the 2.73% fixed rate mortgage plan of large banks, leaving MMI at a low level for nearly a year.

Cao Xu pointed out that in July, the US Consumer Price Index (CPI) grew 3.4% year-on-year, hitting a four-month low, while the core CPI grew 2.5% year-on-year. Both increases were in line with market expectations. The inflation data has declined somewhat, reducing the pressure to raise interest rates immediately. It is expected that the Federal Reserve will remain on hold at next month's interest rate meeting. On the Hong Kong side, today's HIBOR report is 2.69%. It is expected that it will repeatedly hover between 2% and 3% in the short term. Generally, the actual interest rate for newly built H bonds will remain at 3.25%, and it will still be difficult to fall below the peak in the short term.

The 2.73% fixed rate mortgage plan launched by the three major banks has an interest rate 52 pips lower than the 3.25% rate of the average new P plan and the H plan, which can immediately save more interest expenses. As a result, it has recently been selected by many new mortgage customers and conversion customers. It is expected that there is still room for increase in the August fixed rate selection ratio. However, the application dates for the three banks will end this month. Although some banks have extended the subscription application date for the primary market until September 30, it is expected that the number of customers using this plan will decline due to the narrowing of the scope of application, and MMI will follow the recovery thereafter.