SIBOR rate update: It's now above 1% and a 6-year high!

By The Folks @PropTalk - March 24, 2015 No Comments

The three-month Singapore interbank offered rate (SIBOR) was fixed at 1.00129% on Tuesday (March 24), according to Association of Banks in Singapore (ABS) data posted on Bloomberg, up 0.9% from Monday's fixing of 0.99216%. The rate has been climbing steadily since end-December when it stood at around 0.45%.

This is the first time in more than six years that the SIBOR - a key benchmark lending rate - has risen above the 1% level, which may indicate that mortgage rates will increase further in coming weeks.

Many home loans in Singapore are pegged to SIBOR. For instance, Oversea-Chinese Banking Corp (OCBC) has a home loan package that charges an interest rate 0.85% point above three-month SIBOR. If SIBOR rises, the interest rate will also increase. OCBC will review the rate every three months based on movements in SIBOR.

Singapore interest rates have been on the rise, in line with expectations that the US Federal Reserve will increase interest rates this year.

Info Source: CNA

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