Another Rate Hike

On February 16, the BSP raised key interest rates by another 50 basis points (0.5%) after January recorded an inflation rate of 8.7%. The BSP has increased rates by a total of 4% since 2022.

Early this year, we had a client who applied for a home loan for a condo unit. They were quoted a rate of 8.5%–which they found too high. The deal fell through.

With the BSP's rate hike decision yesterday, expect home loan rates to increase to roughly 9.0%.

Consequently, we should expect more downward pressure on prices as buyers (who intend to bank finance purchases) delay their plans until rates go down.