Continuing the wild ride of the past few weeks, SOR began the week at 1%, soaring to 2.11% mid-week and finishing the week at 1.63%. SIBOR was slightly less volatile, ranging between 1.38% and 1.63%.
Meanwhile, home prices in Singapore fell in the third quarter for the first time in more than four years, the FTSE Straits Times Real Estate Index dropped 56 percent this year and rentals are starting to fall. The recession looks set to hit the property market badly. Home owners may get to enjoy lower mortgage rates if further rate cuts come. This is already seen to be happening in Australia where rates were cut by a full percentage point by the Reserve Bank of Australia.