The mortgage interest rate has declined below the 3-percent threshold, triggering concerns that this would balloon household debt.
Financial analysts say borrowing may weigh on domestic demand and hamper future budgets of households.
The Korea Exchange Bank (KEB) said that its mortgage interest rate was 2.85 percent as of Friday, while the rate was 2.91 percent at the Woori Bank.
The analysts forecast that other local banks will follow suit soon.
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