Repo increase likely to push home loan rates to ~8% by end of FY23
In a nutshell
This may soften the unprecedented housing momentum of FY22, but is unlikely to derail it
We expect the repo increase to be between 40-50bps in upcoming MPC meeting with future increases leading to ~5.75% (where we were exactly 3 years ago) or upwards by the end of FY23. Last 40 bps increase in May caused homes loans to move in to 7% +/- range from ~6.5% earlier. And by the end of this financial year, home loan rates will likely touch ~8%. This is unlikely to derail the housing momentum but its will certainly soften it. Coupled with increasing prices, the growth may slow down a bit in FY23, after a record FY22.
Source Name:
Financial Express