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COFIX (Cost of Funds Index), the benchmark for commercial bank mortgage variable rates, remained unchanged last month from the previous month.
According to the Korea Federation of Banks today (the 15th), the COFIX for newly handled funds in August was tallied at 3.18 percent per annum, the same as in July.
After rising for four consecutive months from April to July of this year to reach its highest level in 1 year and 7 months since December 2024 (3.22 percent), the upward trend has paused.
This is the first time in 5 years and 3 months, since April to May 2021 (0.82 percent), that the COFIX for newly handled funds has remained stationary for two consecutive months.
The COFIX based on the balance for August rose by 0.05 percentage points from 3.00 percent to 3.05 percent per annum.
This marks the highest figure in 1 year and 2 months since June 2025 (3.07 percent).
COFIX is the weighted average interest rate of funds raised by eight domestic banks, reflecting interest rate changes in deposit products actually handled by banks, such as time and installment deposits and bank debentures.
A drop in COFIX means banks can secure funds by paying lower interest, whereas a rise in COFIX indicates the opposite.
Specifically, the new-handling-basis COFIX and the balance-basis COFIX are calculated based on interest rates of deposit products such as time deposits, installment deposits, mutual installment deposits, housing installment deposits, certificates of deposit (CDs), repurchase agreements (RPs), cover bills, and bank bonds (excluding subordinated bonds and convertible bonds).
The new-balance-basis COFIX rose from 2.65 percent to 2.71 percent per annum.
The new-balance COFIX also includes interest rates on other deposits, borrowings, and settlement funds.
Commercial banks plan to reflect the COFIX rate released today in their new mortgage variable rates starting as early as the 16th.
(Photo: Yonhap News)
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