{"id":71589,"date":"2024-07-23T13:00:00","date_gmt":"2024-07-23T05:00:00","guid":{"rendered":"https:\/\/kopiandproperty.com\/?p=71589"},"modified":"2024-07-21T20:40:59","modified_gmt":"2024-07-21T12:40:59","slug":"interest-rate-of-6-25-percent-is-high","status":"publish","type":"post","link":"https:\/\/kopiandproperty.com\/interest-rate-of-6-25-percent-is-high\/","title":{"rendered":"Interest rate of 6.25 percent is high…"},"content":{"rendered":"\n

Interest rate of 6.25 percent is high…<\/p>\n\n\n\n

OPR, Home Loan and FD rates<\/h2>\n\n\n\n

Our current overnight Policy Rate is 3 percent. Home loan would be higher, probably 4.3 percent? FD would be around the same number as the policy rate. This 3 percent is considered low as I started working in 1998. So, I have been through the days when car loans were double digits, home loan was 7 percent and this went down to as low as just 3.x percent for home loan not too long ago. <\/p>\n\n\n\n

I could not remember if it dipped below 3 percent but 3.x percent is already half of what I used to pay. That’s low in my opinion. Recent news on the OPR decision and WHY is here: Home owner and Depositor, both will get the same rate. <\/a><\/em><\/strong><\/p>\n\n\n\n

Indonesia’s Central Bank keeps interest rate unchanged at 6.25 percent<\/h2>\n\n\n\n
\"\"
Article here: https:\/\/www.bernama.com\/en\/news.php?id=2318766<\/a><\/figcaption><\/figure>\n\n\n\n

Since the interest rate is 6.25 percent, then the home loan would be higher. I read online that the rates would be between 7 – 9 percent depending on many circumstances. Even at 7 percent, I think this is considered very high and not many people may be able to take up the loan because it is highly unlikely that even their salary increment would be 7 percent or higher. <\/p>\n\n\n\n

High Interest Rate may stop property transactions<\/h2>\n\n\n\n
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Image source: https:\/\/www.reuters.com\/business\/finance\/us-mortgage-interest-rates-top-5-buyers-look-lock-rates-2022-04-13\/<\/a><\/figcaption><\/figure>\n\n\n\n

We can see very clearly the rates are rising and rising very fast. This did not stop property prices from rising (as per below) but in terms of overall transactions, this number has dropped. (bottom image) <\/p>\n\n\n\n

\"\"
Article here: https:\/\/www.reuters.com\/markets\/us\/us-home-prices-rise-5-this-year-more-modestly-next-2024-05-30\/<\/a><\/figcaption><\/figure>\n\n\n\n
\"\"
Article here: https:\/\/apnews.com\/article\/housing-home-sales-real-estate-home-prices-d5e85d54ac0c7abd90bb8217e8057875<\/a><\/figcaption><\/figure>\n\n\n\n

The source of such a slow year was because of high mortgage rates as per the report. <\/p>\n\n\n\n

Be grateful that interest rate remains low in Malaysia<\/h2>\n\n\n\n

Do understand the economics a bit yeah. If Federal Reserve increases the rates, Malaysia’s Bank Negara may have to follow or our ringgit may again be falling… Indonesia’s Central Bank may be pushed to do the same too. Interest rate differential; the lower one will become unattractive and thus, the currency may be sold to move into a currency giving a higher interest rate yeah. <\/p>\n\n\n\n

I just hope all would remain the same for a while. Let the market slowly rebuild momentum. <\/p>\n\n\n\n

Please share with people you care.<\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Our current overnight Policy Rate is 3 percent. Home loan would be higher, probably 4.3 percent? FD would be around the same number as the policy rate. This 3 percent is considered low as I started working in 1998. So, I have been through the days when car loans were double digits, home loan was 7 percent and this went down to as low as just 3.x percent for home loan not too long ago. <\/p>\n","protected":false},"author":3,"featured_media":71741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[12214],"tags":[10911,5808],"class_list":["post-71589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interest-rate","tag-interest-rate-malaysia","tag-opr-malaysia"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/kopiandproperty.com\/wp-content\/uploads\/2024\/07\/pexels-photo-6289065.jpeg?fit=1880%2C1058&ssl=1","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/posts\/71589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/comments?post=71589"}],"version-history":[{"count":11,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/posts\/71589\/revisions"}],"predecessor-version":[{"id":71732,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/posts\/71589\/revisions\/71732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/media\/71741"}],"wp:attachment":[{"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/media?parent=71589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/categories?post=71589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kopiandproperty.com\/wp-json\/wp\/v2\/tags?post=71589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}