Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong has encouraged home buyers to apply for fixed-rate mortgages in anticipation of a potential rise in United States interest rates.

Mr Yam yesterday said fixed-rate mortgages rather than floating rate loans would help ease the interest-rate risk home buyers faced.

'As US interest rates may go higher rather than down, I think local interest rates will be maintained at high levels,' he said.