MortgageWise takes a break

MortgageWise Is Taking A Break This June

We will pause our operations for about two months until mid-July.  This means that, for the first time in our operations since 2014, we will not be updating the rates information on our website, nor responding to any enquiry or form submission.  We do apologize for any inconvenience caused.

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Why Are We Doing This?

After 8 years of continuous operations, 2022 has been a milestone year for us where we are also proud to launch our social mission in April.  I think it’s also apt at this juncture that the whole team takes a much-deserved break from calls/texts to regain our focus and recharge ourselves for the next 8 years where you can expect more innovations from MortgageWise.sg

There’s another important reason why we are taking this break now.  We need at least two months of U.S. inflation data for June and July which comes out around 10th of the month, before we know how to advise our clients responsibly.  Better yet the August numbers as well.  This is an important data as we need to see inflation peaking and rolling off from a high of 8.5%.  That would largely determine the most likely path for U.S. Fed action going forward.  Having said that, it does not mean Fed will stop hiking even if it starts coming down.  It’s about the pace of getting inflation back down to the longer run 2% target rate or some lower number that’s deemed acceptable by the committee, without triggering a recession.  It’s also about the resolve of this Fed to see to that come what may.

This means that, for the first time in our operations since 2014, we will not be updating the rates information on our website, nor responding to any enquiry or form submission.

Why Homeowners Should Tread Carefully Now?

As of 24 May, 1-month and 3-month SIBOR had risen to 1.11% & 1.34% respectively, with two more 0.50% rate hikes coming up shortly.  Hence, we are on track for our forecast on 3-month SIBOR hitting 1.70% by July.  Before more inflation data is out, it’s currently a very delicate situation (giving mortgage advisory) where many homeowners have never seen mortgage rates this high in the last 15 years since the Great Financial Crisis of 2008 – all floating rates will go above 2% by July and fixed rates will go above 3%!

The last thing you want is to be caught holding the ball (contracted to a high fixed rate) when the music stops – global recession, and rates come crashing down.  On the flip side, this new generation of homeowners has never seen inflation running this hot (going above and sustaining at 5-15%) in past crisis since 1970s.  Should Fed be mercilessly resolved to see inflation come down no matter what it takes, and continue in multiple hikes of 0.50%, it will be silly not to lock down fixed rates today at 2.45% if prevailing mortgage rates sustain at above 3% for long periods in a stagflation scenario.

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Without operations, our consultants will not have much income in the next two months.  But we take our advisory role seriously.  We have already warned in this blog – do not be spoofed by brokers or bankers touting floating rate SORA packages and how there’s savings to be reaped with the gap between fixed and floating today.  You are going to start floating rate at 2% by July!

When everything is above 2% be it your existing SIBOR-pegged rate, the repricing rate, or rates from new packages in the market fixed or floating, you’ll need to think very carefully about your next move.  So must we.  Better that way than fools rush in.

I hope you’ll continue to support the work we do and our new social mission when we return.  Look past all these vouchers, online promos, even direct rates lower by merely 0.05%.  We save you much more than that when we help you navigate through interest rate cycles astutely in the long run.

Because we take our job seriously, we need this break.  And yes – we’ll be back!

We have already warned in this blog – do not be spoofed by brokers or bankers touting floating rate SORA packages and how there’s savings to be reaped with the gap between fixed and floating today.  You are going to start floating rate at 2% by July!

Compare Singapore home loan rates quick, fuss-free and reliably at MortgageWise.sg. If you have benefited from deep insights in our blog, imagine how much more you’ll save from our expert view-points & forecasts which you do not get from anywhere else. We help you to navigate interest rate cycle astutely be it for residential or commercial property loan. Work with us today and help support our social cause too!

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