Japan banks to hike 10-year fixed-housing loan rates for third consecutive month

39
1
Japan banks to hike 10-year fixed-housing loan rates for third consecutive month

Four major Japanese banks will raise their 10-year fixed-housing loan rates for the third consecutive month in October.

The hikes come as the Bank of Japan effectively raised its 10-year JGB yield cap to 1% from 0.5% in July. On Friday, the benchmark yield hit a 10-year high of 0.77%.

MUFG Bank will raise its 10-year rate for most preferred customers by 0.06 percentage point to 0.94%, while the rate will rise by 0.05 point to 1.14% at Sumitomo Mitsui Banking, by 0.10 point to 1.45% at Mizuho Bank and by 0.08 point to 1.65% at Resona Bank.

After adjusting its interest rate, Sumitomo Mitsui trust Bank lowered its most preferred rate by 0.04 points to 1.26%.

Three of the five banks will still maintain their variable housing loan rates, which are based on short-term interest rates. Resona Bank will lower its prime variable rate by 0.03 points to 0.34% and Sumitomo Mitsui Trust Bank by 0.07 points to 0.405%.