News broke about local banks raising mortgage rates. This should not come as a surprise as interest rates have been rising for months. DBS raised both 2-year and 3-year fixed rates to 2.75% and scrapped its loan package for HDB buyers at 2.05%. OCBC 2-year fixed rate is at 2.65% while UOB is at 2.98%. UOB 3-year fixed rate is as high as 3.o8%. Here is a quick table to show the rates at the time of writing:

	Fixed Rate
DBS	2-year: 2.75% 3-year: 2.75%
OCBC	2-year: 2.65%
UOB	2-year: 2.98% 3-year: 3.08%

Will the mortgage rates go higher? It is very likely. Singapore mortgage rates are moving towards benchmarking against Singapore Overnight Rate Average (SORA) instead of Singapore Interbank Offered Rates (SIBOR) or Swap Offer Rate (SOR). We will be using the 3-month SORA for comparisons. I got the historical 3-month SORA values from Monetary Authority of Singapore (MAS) and plotted the chart below. I identified the peak SORA in 2006 and 2018....