Three-Month SORA Slides to 1.0201% as Mortgage Rates Hold Near Record Lows
The three-month compounded Singapore Overnight Rate Average (SORA) – the key benchmark for floating-rate home loans in Singapore – has continued its slide, falling to 1.0201 per cent from the previous reading of 1.0208 per cent, according to data released by the Monetary Authority of Singapore (MAS) on Tuesday (April 28). Mortgage rates remain near record lows, with the average three-year floating-rate package at 1.24 per cent and fixed-rate packages as low as 1.43 per cent, according to Mortgage Master.
3M SORA
Avg Floating Rate
Fixed Rate Low
US Fed Rate
SORA Continues Gradual Decline
The three-month compounded SORA is the most widely used benchmark for floating-rate home loans in Singapore. Its continued slide to 1.0201 per cent from 1.0208 per cent signals that borrowing costs for homeowners with SORA-pegged mortgages remain favourable and are trending lower, albeit at a gradual pace.
The decline comes as banks have been maintaining mortgage rates at relatively low levels. According to mortgage comparison site Mortgage Master, the average three-year floating-rate mortgage package currently stands at 1.24 per cent, while the lowest fixed-rate package is at 1.43 per cent. These rates are significantly below the peaks seen in 2023 when SORA-pegged home loan rates exceeded 4 per cent.
US Fed Expected to Hold Rates Steady
On the external interest rate front, Reuters reported on Monday that the US Federal Reserve is expected to keep its benchmark overnight interest rate unchanged at 3.50 to 3.75 per cent when policymakers meet this week. Bond markets are currently pricing in that the Fed policy rate will be maintained at current levels at least until mid-2027, amid elevated energy prices and ongoing geopolitical uncertainty.
While SORA does not move in lockstep with the US federal funds rate, the broadly lower global interest rate environment compared to 2023-2024 peaks has filtered through to Singapore’s domestic lending rates. For homeowners and prospective buyers, the continued SORA decline means monthly mortgage repayments on floating-rate loans will remain manageable, supporting ongoing demand in both the new launch and resale markets.
What This Means for Property Buyers
The sustained low-rate environment has been one of the key tailwinds behind the strong new launch sales seen in 2026, with projects like Tengah Garden Residences (99% sold), Vela Bay (72%), and River Modern (90%) all posting robust take-up rates. Affordable monthly instalments give buyers confidence to commit, particularly for mass-market and mid-tier projects where absolute quantum matters.
For existing homeowners on floating-rate mortgages, the gradual SORA decline translates to slightly lower monthly repayments at each rate reset. Those on fixed-rate packages will benefit when their lock-in periods expire and they refinance at prevailing rates. The current environment favours borrowers, and analysts do not expect a meaningful uptick in SORA until global central banks signal a return to tightening, which appears unlikely before mid-2027 at the earliest.
Frequently Asked Questions
What is the current three-month SORA rate?
The three-month compounded SORA has fallen to 1.0201 per cent, down from the previous reading of 1.0208 per cent, according to MAS data released on 28 April 2026.
How does SORA affect my home loan?
SORA is the key benchmark for floating-rate home loans in Singapore. When SORA declines, your mortgage interest rate and monthly repayment decrease at the next rate reset, reducing your overall borrowing cost.
What are the current mortgage rates in Singapore?
According to Mortgage Master, the average three-year floating-rate package is at 1.24 per cent, while the lowest fixed-rate package is at 1.43 per cent. Both are significantly below the 2023 peaks of over 4 per cent.
Will the US Fed cut rates further?
The Fed is expected to hold its benchmark rate at 3.50-3.75 per cent this week. Bond markets currently price rates staying at these levels at least until mid-2027, amid elevated energy prices and geopolitical uncertainty.
Should I choose a fixed or floating rate mortgage now?
With SORA at 1.0201% and floating rates averaging 1.24%, floating-rate packages currently offer lower costs. However, fixed rates at 1.43% provide certainty. The choice depends on your risk tolerance and whether you expect rates to remain stable or move higher.
Source: Lianhe Zaobao, 29 April 2026. This article has been rewritten and adapted by AsianPrime Properties for educational and informational purposes.
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