Fixed Mortgage Rates Finally Surpass 5% to Hit Record High

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The fixed-rate mortgage has surpassed the 5% threshold, as the average interest rate on fixed-rate home-backed loans has exceeded 5% for the first time on record.

According to the Bank of Korea, the average interest rate on newly issued fixed-rate mortgages last month was 5.11% per annum.

This marks the highest level since relevant statistics began in 2013.

Fixed mortgage rates have been on an upward trend for 12 consecutive months starting from October of last year, and the overall average mortgage rate also rose for the fifth straight month to 4.9% per annum.

Among new household loans, the proportion of loans with interest rates of 5% or higher increased from 20% to 32% in just one month.

With interest rates rising even on fixed-rate loans, the interest burden is growing these days for new borrowers.
※ Please note: This article was translated by AI and may contain errors.