Answer
Mortgage Rate Forecast — Singapore 2026
Where rates are, where they're heading, and whether to go fixed or floating right now.
Answer: 3-month compounded SORA is 0.9–1.3% in early 2026, down from 3.7% in late 2023. Floating mortgage rates are 1.4–1.8% (SORA + spread). Fixed rates are 2.0–2.5% for 2-year lock-ins. Consensus: rates stay low or drift slightly lower through 2026. On a $1,000,000 loan, floating saves $280–$440/month vs fixed. MAS manages via exchange rate, not rates directly, but tracks global easing. Most borrowers should float in this environment unless they need payment certainty.
Current Mortgage Rates (Early 2026)
| Package | Rate | Monthly ($1,000,000, 25yr) | Lock-in |
|---|---|---|---|
| 3M SORA + spread | 1.4–1.8% | $3,960–$4,120 | None / 2yr |
| Fixed 2-year | 2.0–2.5% | $4,240–$4,440 | 2 years |
| Fixed 3-year | 2.3–2.8% | $4,360–$4,560 | 3 years |
| MAS stress test (TDSR) | 4.0% | $5,278 | — |
Rates as of Feb 2026. TDSR always stress-tests at 4% regardless of your actual rate.
SORA Rate Journey (2021–2026)
The full cycle from low to peak to low again
| Period | 3M SORA | Typical Floating | What Happened |
|---|---|---|---|
| 2021 | 0.2–0.5% | 1.0–1.3% | Near-zero rates, everyone floating |
| 2022 | 1.5–2.5% | 2.5–3.5% | Fed rate hikes, SORA spiked |
| 2023 | 3.5–3.7% | 4.0–4.5% | Peak rates, fixed > floating |
| 2024 | 3.0–3.5% | 3.5–4.0% | Plateau, Fed pivot expected |
| 2025 | 1.5–2.5% | 2.5–3.0% | Fed cuts, rates falling fast |
| 2026 (now) | 0.9–1.3% | 1.4–1.8% | Low-rate environment returns |
People who locked fixed at 4%+ in 2023 paid significantly more than those on floating. Timing matters.
Rate Outlook for the Rest of 2026
| Scenario | Probability | 3M SORA | Floating Rate |
|---|---|---|---|
| Rates drift lower | 40% | 0.6–0.9% | 1.2–1.5% |
| Rates stay flat | 40% | 0.9–1.3% | 1.4–1.8% |
| Inflation resurgence | 15% | 1.5–2.5% | 2.0–3.0% |
| Global shock (spike) | 5% | 2.5–3.5% | 3.0–4.0% |
These are estimates, not guarantees. Rate movements depend on US Fed policy, global inflation, and MAS monetary policy decisions.
Fixed vs Floating — The 2026 Decision
On a $1,000,000 loan over 25 years, here's what you actually pay per month:
| Option | Rate | Monthly | 2-Year Total | Savings vs Fixed |
|---|---|---|---|---|
| Floating (SORA) | 1.6% | $4,000 | $96,000 | — |
| Fixed 2-year | 2.3% | $4,290 | $102,960 | −$6,960 |
Bottom line: Floating saves roughly $290/month ($6,960 over 2 years) on a $1,000,000 loan. The risk? If SORA spikes back above 2.5%, you'd have been better off with fixed. In 2026, the base case favours floating.
See your monthly payment at different rates
Plug in your loan amount and slide the interest rate to see exactly how rate changes affect your monthly payment.
FAQ
What is the current SORA rate in 2026?
3-month compounded SORA is around 0.9-1.3% as of early 2026, down significantly from the 3.5%+ peak in late 2023. The 1-month SORA is even lower at 0.7-1.0%. This is the benchmark that most floating-rate mortgages in Singapore are pegged to. Your actual mortgage rate = SORA + bank spread (typically 0.55-0.80%).
Will mortgage rates go up or down in 2026?
Consensus among economists: rates are likely to stay low or drift slightly lower through 2026. The US Fed has cut rates multiple times since late 2024, and Singapore's SORA generally tracks global rate movements with a lag. MAS manages monetary policy through the exchange rate (S$NEER), not interest rates directly — but a strong SGD tends to keep imported inflation low, supporting lower rates. Barring an inflation shock, floating rates should remain attractive.
Should I lock in a fixed rate now?
In early 2026, floating rates (1.4-1.8%) are significantly cheaper than fixed (2.0-2.5%). On a $1M loan over 25 years, that's $280-$440/month less with floating. Lock in fixed only if: (1) you value payment certainty over savings, (2) you believe rates will spike above 2.5% within 2 years, or (3) your budget has zero margin for payment increases. Most borrowers are better off floating in the current environment.
How does MAS monetary policy affect mortgage rates?
MAS doesn't set interest rates like the Fed. Instead, it manages the SGD exchange rate band (S$NEER). When MAS tightens (steeper appreciation), SGD strengthens and imported inflation falls — indirectly keeping rates moderate. When MAS eases (flatter or zero appreciation), rates can rise. Singapore's open capital markets mean domestic rates closely track US rates, with SORA roughly mirroring the US Fed Funds Rate with a spread.
What happened to mortgage rates from 2022 to 2026?
Rates went on a wild ride. In 2021, floating rates were 1.0-1.3%. By late 2023, 3M SORA hit 3.7% and floating mortgages were 4.0-4.5%. People who locked in fixed at 1.5% in 2021 looked brilliant — until those lock-ins expired and they had to refinance at 3.5%+. By mid-2025, rates started falling sharply. In 2026, floating is back to 1.4-1.8%. The full cycle took about 4 years.
When should I refinance my mortgage?
If you're on a fixed rate locked in during 2022-2023 (3.5-4.5%) and your lock-in has expired, refinance immediately — you could save $1,000+/month on a $1M loan by switching to floating at 1.6%. If you're already floating at a competitive rate, check if other banks offer a lower spread. Rule of thumb: refinance if the rate gap is 0.3%+ and your lock-in has expired. Legal costs are $2K-$3K, typically recouped in 3-4 months of savings.
Related
Last updated Feb 2026. SORA data from MAS. Rate forecasts are estimates based on current market conditions and analyst consensus. TDSR stress test at 4% (MAS). This is general information, not financial advice.