Key facts
- Banks' household mortgage lending rates increased in May.
- The average interest rate on new bank loans was 4.19% in May.
- New household loan rates rose to 4.46% in May.
- Mortgage loan rates saw a slight increase of 0.01 percentage point in May.
- Non-mortgage household loan rates decreased by 0.14 percentage point to 5.49%.
Banks' household mortgage lending rates rebounded in May after a previous drop, influenced by an increase in market interest rates, according to data from the Bank of Korea. The average interest rate for new bank loans overall was 4.19% in May, a slight decrease from the previous month. However, while corporate loan rates saw a marginal dip, new household loan rates edged up to 4.46%. Specifically, household mortgage loan rates increased by 0.01 percentage point, ending a six-month rising trend that had been interrupted by a drop in April. Non-mortgage household loans saw a more significant decrease in their average rate, falling to 5.49%. The central bank noted that retail lending rates have been on an upward trend in recent months due to rising market interest rates.