Bank Mortgage Rates Hit 4.66%, Highest for Four Straight Months

Bank mortgage rates recorded an annual 4.66% last month, rising for the fourth consecutive month and reaching their highest level in 3 years and 9 months. According to the weighted average interest rates of financial institutions released by the Bank of Korea on the 30th, the rate on new home mortgage loans at deposit banks in August 2026 stood at an annual 4.66%. This is up 0.18 percentage points from July (4.48%). It is the highest level since November 2022 (4.74%), marking a 3-year and 9-month peak. Mortgage rates have been on an upward trend for four consecutive months since May of this year.

The rate on new household loans in August rose to 4.76%, up 0.12 percentage points from July (4.64%). Jeonse loan rates also climbed to 4.35%, up 0.16 percentage points in one month. General credit loan rates recorded 6.33%, up 0.36 percentage points from the previous month.

Deposit rates, unlike loan rates, remained at similar levels to July. The rate on new savings deposits in August was an annual 3.21%, unchanged from the previous month. Rates on pure savings products such as time deposits fell 0.02 percentage points to 3.14%, while rates on market-linked financial products such as financial debentures and repurchase agreements (RPs) rose 0.05 percentage points from 3.48% to 3.53%.