Banks' household mortgage lending rates up for fifth month in September

Banks’ household mortgage loan rates rose for the fifth consecutive month in September on rising market interest rates, central bank data showed on Thursday.

The average interest rate on new bank loans stood at 4.57 percent last month, up 0.17 percentage points from a month earlier, according to data from the Bank of Korea (BOK).

The average rate on corporate loans increased 0.19 percentage points to 4.49 percent last month, and the rate on new household loans rose 0.14 percentage points to 4.96 percent.

The average rate on household mortgage loans increased 0.22 percentage points to 4.88 percent in September.

Last week, the BOK kept its benchmark interest rate unchanged at 3 percent after two consecutive rate hikes aimed at curbing rising inflation caused by prolonged tensions in the Middle East and robust economic growth.

The rate freeze came after the BOK raised the benchmark rate in its July and August meetings, marking the first back-to-back rate hikes since January 2023, when the central bank raised the rate at seven consecutive meetings starting in April 2022.

Yonhap