October New COFIX 1.29%... 0.13%p Increase in One Month

[Asia Economy Reporter Park Sun-mi] The COFIX (Cost of Funds Index), which banks use as a benchmark to calculate variable-rate mortgage loan interest rates, rose by 0.13 percentage points in one month. Mortgage loan interest rates are expected to increase starting tomorrow.

According to the Bankers Association on the 15th, the COFIX based on new contracts in October was 1.29%, up 0.13 percentage points from 1.16% in the previous month. The COFIX based on outstanding balance and new outstanding balance also increased. At the end of October, the COFIX based on outstanding balance was 1.11%, up 0.04 percentage points from the previous month, and the new outstanding balance COFIX recorded 0.89%, also 0.04 percentage points higher than the previous month.

COFIX refers to the weighted average interest rate of funds raised by eight domestic banks including NH Nonghyup, Shinhan, Woori, SC First Bank, Hana, Industrial Bank of Korea, KB Kookmin, and Citibank Korea. It moves in response to increases or decreases in interest rates of deposit products such as actual deposits, savings, and bank bonds handled by banks. While the COFIX based on outstanding balance and new outstanding balance generally reflects market interest rate changes gradually, the COFIX based on new contracts is calculated based on funds newly raised during the month, so it tends to reflect market interest rate changes more quickly.

Meanwhile, as COFIX rises, variable-rate mortgage loan interest rates set by banks reflecting this are expected to increase simultaneously starting from the 16th.

This content was produced with the assistance of AI translation services.