Sibor rising....any insight to this?

[lajia]

for the past 1 wk, Sibor has been rising. Probably due to the US shutdown effect? :confused:

any insight?

but i suspect it should return to normal hopefully by mid of this mth to 0.31XX level. Let see...:o

[EBD]

Maybe this is the start of it returning to normal.

Do you know historically what normal is for SIBOR? 3-4% is normal. What we have had since the financial crisis is totally abnormal.
Sure there are periods it's less , and some where it's more than 3% but the last few years are unprecedented.

I believe this is why the nanny-state has been warning people not to over-leverage at small interest rate. Time bomb waiting to go off.

http://www.smartloans.sg/sibor-trend
http://www.singaporepropertycycle.com.sg/market-trends/will-interest-rates-go-up-any-time-soon/

If interest rates go to 5% for mortgage repayment I wonder how many will be sent to the wall.

[yiguang2001]

Given the mess we are see now in the US, taper will most likely be push back. Since the USA is unlikely to taper any time soon. I think the interest rate will remain low for sometime. Don't be surprise interest rate will be low throughout 2014.

But I must say my view is in the minority. A lot of people are betting that tapering will begin in Jan 2014. I have my doubts on that. I believe conditions for tapering will only be clearer at around June 2014.

[k00L]

Every day a group of traders will seperately submit their respective interbank borrowing rates and sibor rate is the average of these submissions

Maybe MAS monetary policy meeting is coming up this week and they wana to lock in more funding first so sibor is up slightly - but market is not expecting major change in MAS announcement

I am not too worried as sibor closely follows fed fund rates. Fed not tapering is a +ve sign for leveragers - even bill gross says low short term rates will stay for many more years beyond 2016.

So unil 2016 or beyond, high domestic inflation + low sibor rates + full domestic employment = best combination for property market

[Royston8H]

Should be gradual increase.

See http://www.propertyrichesprogram.com/blog/qe3/

QE3 is a economic stimulus program which aims to suppress U.S. mortgage rates. As the size of QE3 shrinks, mortgage rates are expected to rise. The January 2014's taper marks the second round of reductions to the QE3 program.


for the past 1 wk, Sibor has been rising. Probably due to the US shutdown effect? :confused:

any insight?

but i suspect it should return to normal hopefully by mid of this mth to 0.31XX level. Let see...:o

[pmet]

for the past 1 wk, Sibor has been rising. Probably due to the US shutdown effect? :confused:

any insight?

but i suspect it should return to normal hopefully by mid of this mth to 0.31XX level. Let see...:o

This is due to UIRP: http://forums.condosingapore.com/showthread.php?t=10697

SIBOR and QE/FED/US-BONDS have direct relations. The G20 are making noise but we shall see if the US will give a damn.

[jslee78]

HSBC mortgage interest rate is edging up bit by bit. Paying $100 more per month now compare to 6 month ago.

[auroraborealis]

all SOR-based loans still enjoying all-in rate below 1%

[Royston8H]

Any latest best refinancing package to recommend?


all SOR-based loans still enjoying all-in rate below 1%

[auroraborealis]

not following the latest packages as intend to hold on to these SOR-packages forever without refinancing; regardless rate hike or no hike :sleep:


Any latest best refinancing package to recommend?

[DC33_2008]

Better to do a repricing than a refinancing if needed.
not following the latest packages as intend to hold on to these SOR-packages forever without refinancing; regardless rate hike or no hike :sleep:

[Royston8H]

Yo...i think you are too optimistic about the current exceptionally low sor rate. Interest rate cannot be that low forever.




not following the latest packages as intend to hold on to these SOR-packages forever without refinancing; regardless rate hike or no hike :sleep:

[Royston8H]

I have asked around recently.

For one of my existing loans with dbs, repricing does not really save much as compared to switching to a newer bank or in another words, repricing cost $800 is just a lower cost than the usual legal fee.



Better to do a repricing than a refinancing if needed.

[DC33_2008]

How many years are your fixed rate with the new bank? 3 years?
I have asked around recently.

For one of my existing loans with dbs, repricing does not really save much as compared to switching to a newer bank or in another words, repricing cost $800 is just a lower cost than the usual legal fee.

[Royston8H]

3 yrs.

Havent decided for a Fixed 3 yrs or variable three yrs without locked in.

Any best pkg? :rolleyes:


How many years are your fixed rate with the new bank? 3 years?

[newbie11]

Better to do a repricing than a refinancing if needed.

Why u think so?

[auroraborealis]

no worries, we will know in 3-5 years' time
it's a decision made so i can accept fully all risks and/or rewards


Yo...i think you are too optimistic about the current exceptionally low sor rate. Interest rate cannot be that low forever.

[Royston8H]

Just received another letter to raise interest rate after last letter sent 2-3mth ago. Gradual though but it is coming, my fren.:doh:



no worries, we will know in 3-5 years' time
it's a decision made so i can accept fully all risks and/or rewards

[teddybear]

Obviously lah, SIBOR already went up slightly and they will revise rate either every month or every 3 month depending on your floating package right? :beats-me-man:


Just received another letter to raise interest rate after last letter sent 2-3mth ago. Gradual though but it is coming, my fren.:doh:

[DMCK]

Just received another letter to raise interest rate after last letter sent 2-3mth ago. Gradual though but it is coming, my fren.:doh:

mind sharing which bank you took? i have not received any letter, maybe my package already high rate:banghead:

[stl67]

mind sharing which bank you took? i have not received any letter, maybe my package already high rate:banghead:
mine is DBS and i received a letter yesterday

[Rosy]

I feel it is still early to take fixed rate package. I realised many banks include a lock in period of 2-3years for variable package which i personally feel it is absurd.

[Royston8H]

One of my existing loans is DBS lor. I dont think dbs is offering the best rate now in town.:cool:


mind sharing which bank you took? i have not received any letter, maybe my package already high rate:banghead: