Home loan interest rate may increase.
Home Loan Interest Rates Impact: The rising interest rates scenario in the last few months and expectation of further rate hike is expected to impact homebuyers' attitude, albeit for the short-term and housing sales too could take a hit, experts believe. "Just as in the case of falling numbers of applicants for new home loans, the number of housing sales too could take a hit over the short term," V. Swaminathan, Executive Chairman, Andromeda Loans and Apnapaisa.com, said. Whenever the central bank hikes the repo rate, the lenders pass on the burden to borrowers in the form of increased interest on housing loans. Due to this most borrowers choose to hold back their decision to apply for new loans in the hope that the central bank will cut the repo rate. Soon after the current rate hike by the RBI most banks have started increasing their lending rates. Because of this the borrowers having floating rate interest on their loans saw a rise i...