With improvement in liquidity and some dip in cost of funds, interest rates on home loans may decline by 25-50 basis points, said National Housing Bank (NHB) Chairman R V Verma. “There is no upward pressure and we expect rates to soften in future. Liquidity has improved in the market. The extent of revision in lending rates will depend on how much cost of funds come down,” Verma told reporters on the sidelines of a summit organised by SKOCH.
NHB is also reviewing refinance rates — the rate at which it lends funds to commercial banks and housing finance companies.
