After declining for nine consecutive months, mortgage loan interest rates slightly increased due to the rise in banks' additional interest rates.
According to the "August Weighted Average Interest Rates of Financial Institutions" announced by the Bank of Korea on the 27th, the loan interest rate based on new loans at deposit banks last month was 4.48% per annum, down 0.07 percentage points from the previous month.
Among household loans, the mortgage loan interest rate rose by 0.01 percentage points to 3.51% compared to the previous month. This is the first increase in mortgage loan interest rates in 10 months since October last year. Mortgage loan interest rates had been steadily declining as the possibility of a base rate cut was reflected.
An official from the Bank of Korea explained, "Although major benchmark interest rates such as the 5-year bank bond declined, mortgage loan interest rates rose due to banks increasing their additional interest rates." Jeonse deposit loan interest rates also increased by 0.04 percentage points to 3.82%.
On the other hand, corporate loan interest rates fell by 0.11 percentage points to 4.67%. Due to the decline in benchmark interest rates such as negotiable certificates of deposit (CDs) and bank bonds, loan interest rates for both large corporations (-0.11 percentage points) and small and medium-sized enterprises (-0.10 percentage points) decreased.
The interest rate on savings deposits based on new deposits decreased by 0.06 percentage points to 3.35% compared to the previous month. The pure savings deposit interest rate fell by 0.05 percentage points to 3.36%, mainly due to time deposits (-0.05 percentage points), while market-type financial product interest rates decreased by 0.09 percentage points to 3.32%, mainly due to financial bonds (-0.07 percentage points) and CDs (-0.05 percentage points).
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