for the past 1 wk, Sibor has been rising. Probably due to the US shutdown effect?
any insight?
but i suspect it should return to normal hopefully by mid of this mth to 0.31XX level. Let see...
for the past 1 wk, Sibor has been rising. Probably due to the US shutdown effect?
any insight?
but i suspect it should return to normal hopefully by mid of this mth to 0.31XX level. Let see...
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.co...any-time-soon/
If interest rates go to 5% for mortgage repayment I wonder how many will be sent to the wall.
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.
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
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.
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.
HSBC mortgage interest rate is edging up bit by bit. Paying $100 more per month now compare to 6 month ago.
all SOR-based loans still enjoying all-in rate below 1%
if you dont't own any property, you're short. take cover quickly
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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.