Soaring property prices in the country coupled with increasing interest rates from the part of the regulators are most likely to affect the interest rates on home loans, feels Mr R. V. Verma, Chairman and Managing Director, National Housing Bank.
"Property prices in many large cities are ruling high. Correction is not happening. Interest rates are also moving up. So, potential home buyers are postponing their plans to buy a house," he said.
He said that housing finance companies (HFCs) are likely to move towards tight lending measures which means loan rates from them are likely to get dearer.
In the period between July 2010 to May 31, 2011, NHB has offered maximum amount of refinance to banks as well as HFCs amounting to Rs 12000 crore. In comparison to this, the refinance amount for the whole of the last fiscal was Rs 8500 crore.