The Federal Reserve's April 2026 FOMC meeting concluded with the benchmark rate held at 4.75%, the third consecutive hold since the January cut. For Dubai's mortgage market, this is broadly neutral — the AED peg to the USD means EIBOR tracks Fed policy closely, and with no movement at the top, UAE lender base rates are stable.
Immediate impact on Dubai mortgages
- Three-month EIBOR: Stable at 3.85%, with forward markets pricing no move until Q3 2026.
- Five-year fixed rates: Unchanged at 4.25–4.75% for prime villa paper.
- Tracker margins: Lenders holding at EIBOR + 1.35% to + 1.85%.
- Private bank structures: No change, with blended Lombard facilities still inside 4.50%.
Our recommendation
With rate stability assured through mid-2026 and potential cuts in H2, we continue to recommend a five-year fixed for buyers who value certainty, and a tracker for those comfortable with modest rate risk and potential savings. The 40–60bps fixed premium is historically cheap insurance against any upside surprise.
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