Bank lending rates on new household loans topped five percent for the first time in two months in line with key rate hikes. 

According to the banking industry on Monday, Nonghyup Bank has posted benchmark rates on mortgages at a range of between three-point-67 percent and five-point-01 percent, which will go into effect from Tuesday.

It’s the first time in two months that the top end of the rates surpassed five percent.

With the U.S. Federal Reserve’s increase of its key rate in March and expectations of the U.S.’ continued economic growth, the rates on the U.S. Treasury bonds steadily increased, which is apparently raising the rates in the domestic bond market. 

If the upward pace continues, other local banks are likely to follow suit and raise their mortgage rates up to five percent in the near future.