The Singapore benchmark interest rate for housing loans, the three-month Singapore Overnight Rate Average (SORA), continues to decline, now falling to a level of 1.1384, which is the lowest level in over a year.
Driven by sustained capital inflows and market expectations for a loose monetary policy from the U.S. Federal Reserve, Singapore dollar interest rates have been continuously decreasing recently.
Data from the Monetary Authority of Singapore shows that the three-month SORA has dropped more than 180 basis points over the past year, from 3.0227% at the beginning of 2025 to 1.1384% on January 23 of this year.
On Monday (January 26), the three-month SORA reported at 1.1436, slightly rebounding.
<h4>Further Reading</h4>
Singapore Overnight Rate May Hit Bottom, Fixed Mortgage Rates Near Historical Lows

 Low Rates Don't Mean It's Time to Buy a House, Private Home Price Increases Expected to Remain Moderate


As SORA declines, mortgage rates from various banks are also continuously decreasing. The mortgage comparison website Mortgage Master shows that the current average floating rate for three years has dropped to between 1.47% and 1.67%, while fixed rates range from 1.48% to 1.75%.
Some analysts believe that the three-month SORA is expected to hit bottom soon and may rebound afterward.
Senior currency analyst Chen Jin from Mitsubishi UFJ Financial Group (MUFG) stated that the three-month SORA will continue to decline, reaching around 1.14%. &#34;This decrease reflects ample liquidity, moderate inflation pressure, and a downward trend in the federal funds rate.&#34;
But he also said that with inflation in Singapore rebounding and excess liquidity gradually dissipating, the current level may be close to the bottom, and it is expected that the three-month SORA will rise to around 1.3%

The three-month Singapore Overnight Rate Average (SORA) has continued to decline, currently standing at 1.1384, a new low for the year. Influenced by capital inflows and market expectations of the Federal Reserve's easing policies, SORA has dropped more than 180 basis points over the past year. As SORA falls, mortgage rates from various banks have also decreased, with current floating rates ranging from 1.47% to 1.67%, and fixed rates from 1.48% to 1.75%. Analysts expect SORA may have bottomed out and could rebound

- The three-month Singapore Overnight Rate Average (SORA) has dropped to a new low of 1.1384%, a decline of over 180 basis points from 3.0227% at the beginning of 2025.  
- This decrease is driven by sustained capital inflows and expectations of more accommodative policies from the U.S. Federal Reserve.  
- As SORA falls, mortgage rates are also decreasing, with floating rates averaging between 1.47% and 1.67% and fixed rates ranging from 1.48% to 1.75%, though some analysts anticipate a potential rebound in SORA.

Three-month SORA falls to 1.1384, a new low in over a year | Lianhe Zaobao