Banks' household mortgage lending rates up for 5th month in Sept.

SEOUL, Oct. 29 (Yonhap) -- Banks' household mortgage loan rates rose for the fifth consecutive month in September on rising market interest, central bank data showed Thursday.

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

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

The average rate on household mortgage loans increased 0.22 percentage point 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.

sam@yna.co.kr
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