The benchmark for the variable interest rate of bank mortgage loans (dwellings loans), the Cost of Funds Index (COFIX), has fallen for six consecutive months.
The Korea Banks Association noted on the 15th that the new handling COFIX for March was recorded at 2.84% annually, which is 0.13 percentage points lower than February's 2.97%. Thus, COFIX has declined for six straight months since last October.
COFIX is the weighted average interest rate of funds raised by eight domestic banks. The decline in COFIX means that banks secured funds at lower interest.
The balance-based COFIX dropped by 0.06 percentage points from 3.36% in February to 3.30% last month.
Banks plan to reflect the COFIX rates released today in the new variable interest rates for mortgage loans starting from the 16th.