Lower end of fixed mortgage rates 5tops percent, average loan amount 2.3hundred million won

24At major commercial banks on the day, the lowest fixed rates on home mortgage loans have successively 5exceeded percent. This level marks the highest in 3years and 7months. Some banks have set the lower end of fixed rates in the 5major banks category at the 5percent range.

1New household lending rebounded in the quarter. In particular, home mortgage loans to people in their 30s and in the Seoul metropolitan area led the increase. Growth in new lending was concentrated by age group and region.

Bank of Korea data showed that newly issued home mortgage loans in the quarter 1averaged 2.3hundred million won, a record high. This figure is based on the Bank of Korea's quarterly statistics. The average loan amount also increased.

Financial companies are said to have adjusted fixed interest rates to reflect market rates and their internal interest rate policies. Some officials and market participants raised concerns about “yeongkkeul” (maxing out borrowing) and “bit-too” (investing with borrowed money). Household debt indicators and housing transaction indicators are being monitored together.

Authorities and financial companies continue to compile quarterly lending statistics and track household debt trends. Related statistics are scheduled to be released quarterly going forward. Market participants are checking the published statistics and interest rate announcements from individual banks.