According to the latest data from mReferral's mortgage referral research division, the mReferral Mortgage Rate Index (MMI) for June 2026, which reflects the actual rates typically available to new borrowers, has dropped to 3.17%. This represents a month-over-month decrease of 2 basis points and marks the second consecutive monthly decline, reaching its lowest level in 11 months.

Calvin Cho, Senior Vice President of mReferral Mortgage Services, noted that the proportion of customers opting for a 2.73% fixed-rate mortgage plan from major banks rose above 20% in June, contributing to the MMI's decline for the month. Cho also pointed out that in June, the US Consumer Price Index rose 3.5% year-over-year, while core CPI increased 2.6%, both figures coming in below market expectations. He anticipates that the Federal Reserve will hold rates steady at its policy meeting this week.

In Hong Kong, the one-month HIBOR rate stood at 2.72% today. Short-term interest rates are expected to continue fluctuating within a range of 2% to 3%. The actual interest rate for new HIBOR-linked mortgages is likely to remain around 3.25%, making it difficult for pricing to break through its ceiling in the near term.

However, the current 2.73% fixed-rate mortgage plans offered by two major banks are 52 basis points lower than the 3.25% rate on new prime-based and HIBOR-based mortgage plans. This provides an immediate reduction in interest expenses, attracting individuals with non-fixed income, long-term investors, and those seeking refinancing. All three banks have now extended the application deadline for these fixed-rate mortgage plans to August 31st of this year. The number of customers selecting fixed-rate mortgage plans is expected to continue rising, with adoption potentially approaching 30%, which would further drive the MMI downward.