November over-the-counter rates were cut for fixed-rate mortgages, while variable rates were left unchanged. The Bank of Japan indicated a further increase in the policy rate, prompting discussion of a possible additional rate hike in December or around January 2027.
For November, many financial institutions cut their fixed mortgage rates in response to the recent decline in 10-year Japanese government bond yields, with some exceptions including Mitsubishi UFJ Bank.
Variable rates were left at the same level as the previous month. However, as the Bank of Japan indicated at the end of October that it was moving toward raising the policy rate, an additional rate hike may take place by the end of this year or early next year as long as financial conditions continue to tighten.
The decline in fixed rates was prompted by the 10-year Japanese government bond yield falling from around 3.00%-2.90% in early October to 2.90%-2.80% from mid-month onward.
MUFG Bank, by contrast, raised its fixed rates, explaining that it uses the 10-year Japanese government bond yield as a benchmark for determining rates. The November rate-setting decision reportedly used the same method as the previous month.