By The Folks @PropTalk - February 2, 2015 No Comments

According to a News @9 report tonight, the 3-month SIBOR has hit 0.67863% today - the highest in more than 6 years and 50% up since January.

This continual SIBOR rally in recent months has pushed the home mortgage rate to between 1.5 - 2%. This is more than double compared to just one year ago.

However, market analysts have said that the current home mortgage rate is still comparatively low and unlikely to reach pre-2008 crisis high (where SIBOR was hovering at around 3.5%) over the next 5 years. So the SIBOR rally should not pose any major hardship to the "buy for rental" investors in the short to medium term, despite the higher monthly repayment expected.

Sounds reassuring... until one recalls the 20,000-some new homes that are expected to hit the market this year and another 20,000 come next year. And not to mention the already falling rental market (3% down in 2014), which every father-mother-son and even their cat are saying will worsen much further this year...

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