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Japan’s Biggest Banks Lift 10-Year Fixed Mortgage Rates for January

Banks cite rising 10-year government bond yields as the driver, leaving variable loans dependent on later BOJ decisions.

Overview

  • The five major lenders raised their preferential 10-year fixed mortgage rates by 0.190–0.420 percentage points for loans applied in January.
  • Post-increase levels are Mizuho 2.550%, Sumitomo Mitsui Banking Corp. 2.650%, Mitsubishi UFJ 2.680%, Sumitomo Mitsui Trust 2.845%, and Resona 2.945%.
  • Variable mortgage rates, used by most borrowers, were left unchanged at 0.640–0.925%.
  • Banks set fixed offers with reference to newly issued 10-year JGB yields, and recent long-term yield gains fed into the pricing.
  • Any rise in variable rates is generally expected to follow Bank of Japan policy moves that market watchers see as possible from spring.