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2026-07-16 10:42:11
[Bank of Korea's interest rate hike pushes up loan rates; mortgage rates at the five major banks approach 8%] (1) On May 15, the Bank of Korea raised its benchmark interest rate by 0.25 percentage points to 2.75%, entering a full-scale interest rate hike cycle. The market is worried that the already rising loan rates may climb further. (2) According to banking data, the annual interest rate for five-year fixed mortgage loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) is currently between 4.74% and 7.41%, with the highest approaching 8%. (3) Compared with late May, the lower limit of interest rates has risen sharply by 0.42 percentage points in two months. The main reason is that the market has priced in the interest rate hike expectations in advance, and the scale of loans is subject to regulatory restrictions, which has weakened the banks' motivation to maintain low interest rates.
