The 3 month SOR Fixing rate has just fallen to a new low of 1.16%. This is lower than the lowest i have heard of (1.17%) since i started tracking SOR.
The Fed rates have been kept at 2% as has been widely anticipated. Opinions are divided on whether they will hike rates in the next round of meeting, but the odds that it will be maintained at 2% is getting higher. Many analysts point to the fact that no time frame has been given for the rate hike is an indication that it will not go up soon. The Feds are said to be “behind the curve”, usually taking longer than expected to act. Perhaps the current movement in SOR is reflecting this effect.
Again, good news for home loan owners who have gone with loans pegged to SIBOR or SOR, but as always, keep a close watch.