Projection of Singapore SIBOR in the next 3 years.

For the next three years, the projections for Singapore's interest rates, particularly the Singapore Interbank Offered Rate (SIBOR) and the Singapore Overnight Rate Average (SORA), are influenced by global economic trends and the policies of major central banks, such as the US Federal Reserve.

2025

• Analysts predict that interest rates could start to ease in 2025. The US Fed is expected to cut the federal funds rate, which would likely lead to a decrease in SIBOR and SORA rates. By the end of 2025, fixed home loan rates in Singapore could decrease to as low as 2%, although this is contingent on various economic factors.
• The SOFR 3M forecast, which is closely related to SIBOR, suggests a gradual decline in rates throughout 2025. For example, the SOFR 3M rate is forecasted to decrease from around 4.3% in February 2025 to approximately 3.0% by the end of the year.

2026

• The trend of decreasing interest rates is expected to continue into 2026. The SOFR 3M forecast indicates that rates will stabilize at around 3.0% and may see slight fluctuations but remain generally low. This suggests that SIBOR rates will also remain relatively stable and low, supporting a more favorable mortgage environment.

2027

• For 2027, the projections suggest that interest rates will continue to be managed at lower levels. The SOFR 3M forecast shows rates hovering around 3.0%, indicating a stable and potentially slightly decreasing trend for SIBOR as well. This stability is expected to benefit the housing market by keeping mortgage rates relatively low.

In summary, the next three years are likely to see a gradual decrease and then stabilization of interest rates in Singapore, driven by global economic conditions and the policies of major central banks. This trend is expected to make mortgage borrowing more affordable and could support increased activity in the Singapore property market.