October mortgage rates: fixed-rate mortgages rise for a second consecutive month, with variable-rate mortgages also expected to rise following the policy rate hike

The story

October mortgage rates offered by financial institutions rose for fixed-rate loans for a second straight month, reflecting higher yields on 10-year Japanese government bonds.

The BOJ's policy rate hike is expected to push variable rates up by approximately 0.25 percentage points from current levels, with the impact potentially being reflected after a time lag of around 3 months.

The BOJ estimates a neutral policy rate range of 1.1%-2.5%. As Governor Ueda referred to inflation risks at a press conference on 18 September, further gradual rate hikes are expected.

Accordingly, fixed and variable rates may both remain on an upward trend, making it necessary to monitor changes in the interest-rate environment.

At a glance

Fixed interest ratesOctober fixed mortgage rates rise

Variable interest rateVariable rates expected to rise by around 0.25 percentage points

Policy rateBOJ policy rate raised from 1.0% to 1.25%

Neutral interest rateNeutral interest rate range: 1.1%-2.5%

StatementGovernor Ueda refers to inflation risks

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