Rates on new mortgages fell in February, BOK data shows

Bank lending rates on new household loans edged down in February, and interest rates paid by banks on new deposits also fell, central bank data showed Thursday.

The average interest rates on fresh household loans extended by local banks came to 3.38 percent in February, down 0.01 percentage point from the previous month, according to the Bank of Korea.

The data came amid Korea’s efforts to tackle rising household debt. Korea’s outstanding household credit came to 1,344.3 trillion won ($1.2 trillion) at the end of 2016, up 11.7 percent from a year earlier.

The average interest rates on new mortgages came to 3.19 percent in February, up 0.03 percentage point from a month earlier, according to the Bank of Korea. YONHAP