Japan's Flat 35 Mortgage Rate Tops 3.21% for First Time in 17 Years
Updated
Updated · Nippon.com · Jun 21
Japan's Flat 35 Mortgage Rate Tops 3.21% for First Time in 17 Years
2 articles · Updated · Nippon.com · Jun 21
Summary
3.21% became the minimum June rate for Japan’s Flat 35 mortgage, pushing the long-term fixed home loan above 3% for the first time in 17 years.
Rising inflation drove the jump as 10-year Japanese government bond yields climbed on fiscal concerns, Middle East tensions and higher oil prices.
¥200,671 more in monthly payments would face a borrower financing 90% of a home versus August 2016, reflecting both a ¥39.2 million rise in Tokyo-area new condo prices and higher interest costs.
Around 1% variable-rate mortgages still undercut Flat 35 by roughly two percentage points, helping them attract about 80% of borrowers even as analysts warn the rate outlook is increasingly uncertain.