Banks' overall lending rates fell for the first time in four months in March as a decline in corporate loan rates outweighed a rise in household lending rates amid tighter regulations aimed at stabilizing the housing market, data showed Tuesday.
Banks' overall lending rates rose for the fourth consecutive month in February, driven by higher mortgage loan rates amid tighter regulations aimed at stabilizing the housing market, data showed Friday.
New household loans per borrower in the fourth quarter of last year fell to the lowest level in about two years amid the government's tightened regulations to cool the overheated housing market, the central bank said Tuesday.
Banks in Korea are expected to tighten lending standards in the fourth quarter, particularly for household loans, as authorities have tightened loan restrictions to clamp down on the overheated housing market, a central bank survey showed on Monday.
Home purchases in Seoul surged across all age groups in May as anxiety over tighter lending regulations and shifting real estate sentiment drove buyers back into the market.
Cofix, or the Cost of Funds Index, a benchmark lending rate for mortgage loans, came to 3.82 percent in September, up 0.16 percentage points from a month earlier, according to the data from the Korea Federation of Banks.
The government must keep close tabs on the market so that apartment prices in Seoul and other popular areas do not heat up as during the pandemic.
Korea's rate cap could be raised as the financially vulnerable are shut out of the lending market by higher borrowing costs.
Korea will carry out eased lending rules for first-time homebuyers and owners of one home next month as the once-hot housing market appears to be entering a downturn amid rising interest rates, the land ministry said Thursday.
Korea JoongAng Daily Sitemap
