New mortgage loans per borrower drop at sharpest pace in Q2

New mortgage loans per borrower dropped at the sharpest pace in the second quarter following the government’s regulations to cool the overheated housing market, central bank data showed on Tuesday.

Fresh mortgage lending per borrower averaged 208.29 million won ($150,500) during the April-to-June period, down 21.1 million won from an all-time high of 229.39 million won set three months earlier, according to data from the Bank of Korea (BOK).

It marked the sharpest on-quarter decline since the BOK started compiling such data in 2013.

New household lending per borrower, which includes mortgage loans, fell 1.28 million won to 34.14 million won over the cited period, marking the lowest since the first quarter of 2023.

The BOK said that local banks tightened lending controls in line with the government’s measures aimed at stabilizing the property market.

By age group, new mortgage loans fell across nearly all brackets in the second quarter, with borrowers in their 40s posting a 35.37 million won decrease and those in their 30s a 26.32 million won decline.

By region, fresh mortgage lending in the greater Seoul area fell by 43.97 million won per borrower in the second quarter, followed by the Gangwon region with 21.08 million won.

Yonhap