Interest rates on home mortgage loans have risen sharply in the past two to three weeks as the Bank of Korea has come under mounting pressure to raise its key rate following the United States rate hikes.
 
According to the banking industry on Sunday, the so-called guide interest rates for home mortgage loans that will be released on Monday will be some ten to 12 basis points higher than three weeks earlier and stand in the mid four percent range.
 
Of the major lenders, the rate for KB Kookmin Bank is expected to stand in the three-point-47 percent to four-point-67 percent range, up eleven basis points from three weeks earlier. The rates for other banks are all expected to rise by eleven to 12 basis points.
 
Analysts say that local interest rates had been relatively stable this year in the lower four percent range, but they could rise to five percent in the fourth quarter as the U.S. Federal Reserve continues to raise its key rates and the BOK is also expected to increase its rates within this year.