Core Viewpoint - The decline in mortgage rates in Hong Kong is expected to stimulate housing demand and alleviate financial pressure on homebuyers, with rates projected to return to the 2.5%-3% range by the end of 2025 [2]. Group 1: Mortgage Rate Changes - Prior to the recent interest rate cut by the Federal Reserve, Hong Kong's mortgage rate was at 4.25%, which has now adjusted to 3.875% [1]. - As of May 16, 2025, the one-month HIBOR is at 1.3%, leading to a significant reduction in actual mortgage rates from a capped rate of 3.5% to 2.26%, marking a new low since July 2022 [1]. - Reports indicate that mortgage rates could further decrease to 1.89% by May 30, 2025 [1]. Group 2: Impact on Homebuyers - The reduction in mortgage rates has significantly eased the monthly payment burden for homebuyers, with a decrease of approximately 3,000 HKD in monthly payments for a 5 million HKD mortgage due to the drop from 4.25% to around 3.5% [2]. - The two main types of mortgage products in Hong Kong are P-rate and H-rate, with H-rate being more variable and linked to market conditions [2]. Group 3: Market Outlook - The overall decline in mortgage rates is expected to have a positive impact on the housing market, although homebuyers should remain vigilant regarding interest rate fluctuations and their repayment capabilities [3].