Seoul: Banks' household mortgage loan rates rose for the third consecutive month to the highest point in two years and eight months in July on rising market interest, central bank data showed Wednesday.

According to Yonhap News Agency, the average interest rate on new bank loans stood at 4.27 percent last month, down 0.04 percentage point from a month earlier, based on data from the Bank of Korea (BOK). The average rate on corporate loans fell by 0.07 percentage point to 4.2 percent, whereas the rate on new household loans increased by 0.14 percentage point to 4.64 percent.

The statistics indicate that the average rate on household mortgage loans rose by 0.12 percentage point to 4.48 percent in July. This marked the highest level since November 2023, when the rate averaged the same. Meanwhile, the average rate on non-mortgage household loans reached 5.97 percent, up by 0.25 percentage point from the previous month.

The BOK highlighted that retail lending rates have been on the rise in recent months as market interest rates climb. Last month, the central bank implemented the first rate hike in three and a half years, raising the benchmark rate by 25 basis points to 2.75 percent.