Experts explain what to consider for home loans, and why interest rates for savings accounts fell ahead of the Fed cutting rates.
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Banks make interest payments to those who deposit funds with them, and earn interest income from those who borrow money from them. And as rates in the US stay high for longer, banks could continue to face the issue of having more funds than they can loan out, said Mr Chia., the decision to cut rates may not be due to the Fed or market expectations, said Mr Glenn Thum, senior research analyst at Phillip Securities Research.
Mortgages pegged to the Singapore Overnight Rate Average will be more impacted by the Fed, said Mr Chia. According to the PropertyGuru portal, DBS offers a two-year fixed package at 2.9 per cent. The three-month compounded SORA on May 2 was 3.6491 per cent. Macroeconomic consultant Komal Sri-Kumar said the US presidential election in November could affect the Fed’s decisions.
Interest Rates Banks CNA Explains Home Loan Savings Account
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