The much-anticipated increase in interest rates is now coming to fruition with three month EIBOR (Emirates Interbank Offer Rate) currently standing at 2.5%. This is an increase of 269% over recent years and a sharp incline can be seen in recent months given the US Fed’s decision to increase their base lending rate to a range of 1.5 – 1.75%.
This is expected to increase further in the coming years as the US economic outlook is anticipated to improve. There is no saying how high this could increase in the US, but the all-time peak over the last 20 years averaged at 5.73%. As long as the UAE Dirham is pegged to the US Dollar this will have a direct impact on mortgage rates here.