Banks' household mortgage lending rates rise to 2 yrs 7 months high in June

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.

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

The average rate on household mortgage loans increased 0.04 percentage point 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 point 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 3 1/2 years, raising the benchmark rate by 25 basis points to 2.75 percent. (Yonhap)

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