Homeowners convert to costlier fixed rate loans

Source: Bloomberg

Mortgage refinancing in the U.S. is increasing as record numbers of homeowners dump their adjustable-rate mortgages for the security of a fixed loan.

The amount of refinanced home loans will reach $321 billion by the end of June, the most in a year. Nine out of 10 of those borrowers will choose a fixed rate.

Property owners are abandoning adjustable-rate mortgages, or ARMs, to ward off the prospect of higher payments. About 6 million U.S. homeowners, or 59 percent of the ARM market, have Libor-indexed loans. The 12-month U.K. benchmark Libor rate rose more than two-thirds of a percentage point in the past month.

Question: Will this situation happen in Singapore? Will more people move from floating to fixed rate loans?