Market Outlook

The Feds Raised Interest Rates Again?! Here’s What To Expect.

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By Irfan

Recently the Feds have raised interest rates by 75 basis points.


This is because of the current rate of inflation at 8 percent in the US. Hence in order to cool down the economy the Feds have been aggressive with their interest rate hikes with 1 to 2 more hikes expected by the end of 2022.


However since Singapore is interconnected with the global economy and the global market uses USD as the currency, Singapore is affected by the rising interest rates as well.


Due to the interest rate hikes, local lenders, UOB and DBS Bank, are temporarily ceasing their fixed-rate home loans while they review the interest rates on these packages.



So What Does This Mean For The Property Market In Singapore.

Since interest rates are rising this means that it will be more expensive to take loans to purchase properties. Just about two months ago, UOB had upped the rates for its two- and three-year fixed rate packages. The rate was raised to 2.98 per cent per annum for its two-year fixed package, and 3.08 per cent per annum for its three-year fixed package.


Hence, Singaporeans might have a harder time getting the property they want due to not being able to finance the new loans.





So What Should You Do Now?

Right now I advise buyers to be on the lookout and buy properties before interest rate increases again. This is to ensure you can still finance a loan while you can and get a property you want.


Disclaimer: Whatever I say shall not constitute financial advice. This is my own opinion so follow it at your own risk.


If not, thank you for reading my article and thank you for your time.


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