Singapore banks unlikely to cut mortgage rates in 2024 despite expected Fed rate cuts

ONGOING economic uncertainties and rising costs are likely to keep Singapore banks from slashing their home loan rates in 2024, despite expectations that the US Federal Reserve will cut its benchmark interest rate at least three times this year.

While home mortgage rates are forecast to be trimmed alongside the expected rate cuts, analysts said the degree of adjustments may differ as banks continue to strive for better risk-return profiles.

Clive Chng, associate director at Redbrick Mortgage Advisory, said it is reasonable to expect that banks will continue to be selective in their pricing amid global uncertainties and interest rate volatility.