Banks' household mortgage lending rates rise for 3rd month in July

Banks' household mortgage loan rates surged for the third straight month in July, reaching their highest level in two years and eight months, according to data from the Bank of Korea. The average interest rate on these loans reached 4.48 percent, marking a 0.12 percentage point increase from the previous month. This marked the highest rate since November 2023, when the average was also 4.48 percent.

The Bank of Korea's data revealed that market interest rates were on the rise, leading to the increase in retail lending rates. The central bank had recently delivered its first rate hike in 3 1/2 years, increasing the benchmark rate by 25 basis points to 2.75 percent.