Back in 2018, the Fed Funds Rate Increase to 2.4%. But the Interest Rate for Home Loan was still kept low in Singapore. Why is it now the Fed Funds Rate at Increase to only 1.5% yet Interest is High

Previously Fed Funds Rate in 2018 rose up to 2.4% but singapore home loan interest rate averaging around 2%.

But now it increased to 1.5% but you start to see banks increasing it to 3%.

https://www.macrotrends.net/2015/fed-funds-rate...

What's the difference?

Discussion (1)

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Just_Saying

19 Jul 2022

Difference is feds already make it clear that their target is 3.25 - 3.5% by year end, and with the super inflation going on and steady unemployment rate, the rate hikes is almost definite.

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With Bank interest rates so low, would it be better if I pay back my CPF Home loan with the spare cash and get a higher interest from CPF

With the current financial crisis, bank rates are at a low. Should we fund for our housing using a bank loan or HDB loan? Since interest rates are low but may fluctuate in the future.?

Parking money in deposits with high interest rate or low-risk money funds with higher interest rate?