Household loan interest rates rise for 4th month... "Impact of additional interest rate hike"

Interest rates on household loans in the banking sector rose for the fourth month, the highest in 11 months.

According to the "weighted average interest rate of financial institutions" released by the Bank of Korea today (27th), the loan interest rate in November based on the new handling amount of deposit banks rose 0.09%p to 4.76% per year.

Specifically, the interest rate on household loans rose 0.24%p from October to 4.79% per annum, marking the fourth month of increase.

The level of interest rates is the highest since December last year when it was 4.82% at the same time.

Mortgage rates, a subsection, also rose for the fourth month to 4.3%, the highest in a year since 4.48% in November last year.

The Bank of Korea assessed that the aftermath of the banking sector's successive rise in additional interest rates from July to October was the result of a lag.

However, the impact is disappearing and the five-year bank bond interest rate, which is a fixed mortgage indicator rate, has fallen sharply, which is likely to lead to a drop in household loan interest rates in December.

In addition, corporate loan interest rates also rose to 4.76% as they turned upward in a month.

In addition, the interest rate for receiving savings fell 0.02 percentage point to 3.35% per annum, continuing its downward trend for two consecutive months.

The difference between the loan interest rate and the deposit interest rate, which is the difference between the loan interest rate and the receiving interest rate, increased by 0.11%p to 1.41%p based on the new handling amount.

Meanwhile, in November, the fixed type out of mortgage rates was 4.31%, higher than the variable 4.25%.It is the first time in two years and a month that

fixed interest rates have reversed their fluctuations since October 2022.

The Bank of Korea explained that the result came as the aftermath of the increase in the bank's additional interest rate was concentrated on household loans, which surged mainly in fixed types.