Banks' household mortgage lending rates up for 5th month in Sept.
Banks' household mortgage loan rates rose for the fifth consecutive month in September on rising market interest, central bank data showed Thursday. The average interest rate on new bank loans stood at 4.57 percent last month, up 0.17 percentage point from a month earlier, according to the data from the Bank of Korea (BOK). The average rate on corporate loans increased 0.19 percentage point to…
Banks reported a significant increase in household mortgage loan rates for the fifth month in a row in September, according to data from the Bank of Korea. The average interest rate on new bank loans rose to 4.57 percent, a 0.17 percentage point increase from the previous month. Corporate loan rates also climbed by 0.19 percentage point to 4.49 percent.
Household loan rates, including household mortgage loans, saw a 0.14 percentage point rise to 4.96 percent. A 0.22 percentage point increase brought the average rate on household mortgage loans to 4.88 percent in September. The Bank of Korea maintained its benchmark interest rate at 3 percent last week, after two consecutive rate hikes aimed at tackling inflation.
The rate increase was the first consecutive hike since January 2023, following a series of seven consecutive rate hikes starting in April 2022.
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