Korean Mortgage Rates Hit 2.5-Year High at 4.36% Amid Rate Hike

Bank of Korea data reveals household mortgage rates climbed to 4.36%, the highest since Nov 2023, driven by rising market interest rates and a recent policy rate hike.

Woofun AI data shows that the average interest rate on bank household housing mortgage loans in South Korea rose for the second consecutive month, reaching 4.36% in June. This marks the highest level since November 2023, increasing by 0.04 percentage points from the previous month. The Bank of Korea attributed this rise to increasing market interest rates, following its first interest rate hike in three and a half years earlier this month. New household loan rates also increased by 0.04 percentage points to 4.5%, while corporate loan rates rose by 0.14 percentage points to 4.27%. Non-mortgage household loan averages reached 5.72%, up 0.23 percentage points.