Home loan interest rate may drop further
Even if the slash of interest rates in home loans has inspired little immediate impact from the homebuyers’ market on Monday, builders' groups feel that the interest rates would eventually fall further over a period of time and settle down closer to 7% in times to come. “We were expecting interest rates to be slashed to about 7.5% to inspire any real interest from the primary market. But 8.9% is still too high to make any direct impact on the market with immediate effect,” Amit Modi, vice president Credai, western UP said. The buyers who are already on a wait-list of builders in Noida or even Gurgaon feel the pressure on builders is now to deliver on existing bookings. “The builders have already slowed down following demonetisation, so we don’t think the buyers have any immediate enthusiasm to go and book apartments. The main homebuyers are the middle class, and they are now cautious about how they are going to invest their funds, or take up new financial commitments,” Shweta Bharti, general secretary, Noida Extension Flat Owners Welfare Association, said.
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