COFIX rises again after a month

[Financial News] COFIX (the Cost of Funds Index), which serves as the benchmark for variable rates on bank home mortgage loans, rose again after a month.
According to the Korea Federation of Banks on the 15th, the September COFIX based on new transaction amounts stood at an annual rate of 3.43%, up 0.25 percentage points from 3.18% the previous month. This was the highest level this year and 0.54 percentage points higher than at the end of last year (2.89%).
The COFIX based on new transaction amounts fluctuated from 2.77% in January to 2.82% in February and 2.81% in March this year, then rose for four consecutive months from April through July. It remained at the same level as the previous month in August but resumed its upward trend in September.
The outstanding-balance COFIX and the new-balance COFIX also rose in tandem. The September outstanding-balance COFIX stood at an annual rate of 3.15%, up 0.10 percentage points from 3.05% the previous month, while the new-balance COFIX rose 0.08 percentage points from 2.71% to an annual rate of 2.79%.
COFIX is calculated as the weighted average of funding rates at eight domestic banks. When the cost of securing funds through deposits, installment savings and bank bonds rises, COFIX also increases, putting upward pressure on variable-rate home mortgage loan rates that use it as a benchmark.
The COFIX based on new transaction amounts is calculated using funds newly raised during the month in question, allowing it to reflect changes in market rates relatively quickly.

[email protected] Ye Byeong-jeong Reporter