Home owners will have to brace themselves for higher interest rates for home loans – whether floating or fixed – as rates in the United States go up.
The US Federal Reserve raised rates by 25 basis points this week, and has signalled that there will be more hikes this year.
Interest rates in Singapore are tied closely to the US’ due to the Republic’s open economy, in which banks conduct a lot of operations in international markets, where the greenback is the main currency.
The hit to the pocket has already started, with fixed mortgage rates climbing since the fourth quarter of last year, noted Mr Nelson Neo, head of home financing solutions at DBS Consumer Banking Group.
He said rate-increase expectations have resulted in an across-the-board rise in fixed home loan rates.
Read more at: https://www.straitstimes.com/business/banking/what-can-home-owners-do-amid-rising-home-loan-rates