Mortgage Loan Interest Rates Rise Again... June KOFIX Hits Record High at 2.38%

[Asia Economy Reporter Buaeri] The COFIX (Cost of Funds Index), which serves as the benchmark for variable interest rates on mortgage loans in the banking sector, has surpassed 2%.

According to the Korea Federation of Banks on the 15th, the COFIX based on new loan amounts last month rose by 0.4 percentage points from the previous month to 2.38%. This is the largest increase in 12 years and 5 months since the COFIX based on new loan amounts was first announced in January 2010.

The COFIX based on outstanding loan balances increased by 0.15 percentage points to 1.83%, and the new outstanding balance-based COFIX rose by 0.11 percentage points to 1.42%.

Commercial banks are expected to reflect the COFIX rate announced on this day in their new mortgage loan variable interest rates as early as the 16th.

COFIX is the weighted average interest rate of funds raised by eight domestic banks (KB Kookmin, Shinhan, Hana, Woori, Nonghyup, Industrial Bank of Korea, SC First Bank, and Korea Citibank). It rises or falls reflecting changes in the interest rates of deposit products such as actual deposits, savings, and bank bonds handled by banks.

In the case of COFIX based on outstanding balances and new outstanding balances, market interest rate changes are generally reflected gradually, but the COFIX based on new loan amounts is calculated based on funds newly raised in the current month, so market interest rate changes are reflected relatively quickly.

Meanwhile, the short-term COFIX announced over the past four weeks was surveyed to be between 1.98% and 2.16%. The short-term COFIX is calculated based on short-term funds with a contract maturity of three months.

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