Bank mortgage rates hit their highest level in more than 7 years in November.

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SEOUL, 30 Dec. (Yonhap) – Mortgage rates at South Korean banks hit their highest level in more than 7 years in November amid rising borrowing costs, central bank data showed on Thursday,

Bank mortgage rates averaged 3.51% in November, up 0.25 percentage points from the previous month, according to data from the Bank of Korea (BOK)

This is the highest since July 2014, when the corresponding rate was 3.54%.

The rate on unsecured loans from banks also rose 0.54 percentage points to 5.16% last month, the highest level since September 2014, when it was 5.29%.

The average interest rate on loans to households thus rose to 3.61% in November against 3.46% the previous month, the highest since 3.61% in December 2018.

Lending rates have increased recently, in line with the government’s desire to curb growing household debt and central bank rate hikes aimed at controlling inflation.

At the end of November, the BOK raised its key rate by 0.25 percentage point to 1%, three months after announcing a rate hike of a quarter of a percentage point in August.

The average bank deposit rate, meanwhile, stood at 1.57% in November, up 0.28 percentage points from the previous month, the BOK said.

The spread between loans and deposits by South Korean lenders, an indicator of bank lending profitability, stood at 1.66 percentage points last month, below the 1.78 percentage point of October.

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