World Economy

S. Korea Mortgage Rates at Record-Low

S. Korea Mortgage Rates at Record-LowS. Korea Mortgage Rates at Record-Low

Mortgage loan rates in South Korea hovered near the record-low level, propping up concerns that the low interest rates would boost household debts further, central bank data showed Friday, Xinhua reported. Rates on fresh home-backed loans, extended by banks, averaged at an annualized rate of 2.94% in August, down 0.02 percentage points from a month earlier, according to the Bank of Korea. The average mortgage loan rates declined to 2.81% in April, before gaining above 3%. It fell below 2% again from July. The low rates came after the BOK lowered its policy rate by 25 basis points in March and June each to an all-time low of 1.5%.