COFIX, the Benchmark for Variable-Rate Mortgage Loans, Declines for Seven Consecutive Months

The Cost of Funds Index (COFIX), which serves as the benchmark for variable-rate mortgage loans in the banking sector, has declined for seven consecutive months.

According to the Korea Federation of Banks on May 15, the COFIX based on new loan issuance for April was recorded at 2.7%, which is 0.14 percentage points lower than the 2.84% reported in March. This marks a downward trend for seven consecutive months. The balance-based COFIX also fell by 0.08 percentage points, from 3.3% to 3.22%.

COFIX is the weighted average interest rate of funds raised by eight domestic banks, reflecting changes in the interest rates of deposit products such as savings accounts and bank bonds actually handled by banks. The "new balance-based COFIX," which was newly introduced in June 2019, also decreased by 0.04 percentage points, from 2.8% to 2.76%.

Yonhap News Agency

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