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  Adrian Lim

• Nov. 14, 2019

Interest Rate cut !

Headline : US Fed is cutting interest to keep Economy going. 

Do you see a correlation between Interest and home Prices ? 

Theoretically speaking whenever interest rates are low means the cost of borrowing is low and the money is cheap. This is the time when the luxury goods and hard assets are in popularity. This is because people are more affordable to pay the installments. 

The above chart has shown the correlation after the rate cut during the sub prime market in 2007. Singapore home prices reacted positively to the cut. 

By looking the chart, does it makes sense to buy property now OR to buy when the interest rate cut further ?