Korean mortgage rates climb to highest level in two years, seven months

Banks' household mortgage loan rates rose for the second consecutive month to the highest point in two years and seven months in June on rising market interest, central bank data showed Tuesday.

The average interest rate on new bank loans stood at 4.31 percent last month, up 0.12 percentage point from a month earlier, according to the data from the Bank of Korea (BOK).

The average rate on corporate loans added 0.14 percentage points to 4.27 percent, while the rate on new household loans rose 0.04 percentage points to 4.5 percent.

The average rate on household mortgage loans increased 0.04 percentage points to 4.36 percent in June, marking the highest level since November 2023, when the rate averaged 4.48 percent.

The average rate on non-mortgage household loans stood at 5.72 percent, up 0.23 percentage points from a month earlier.

The BOK said retail lending rates have been rising in recent months as market interest rates increased.

Earlier this month, the central bank delivered the first rate hike in three and a half years, raising the benchmark rate by 25 basis points to 2.75 percent.

Yonhap