Fairval

Notes on Indian equities, sectors and economy

Home loan rates up 45% from lows

Posted by fairval on March 21, 2007

Home loan rates are bounding up. This graph from a Macquerie report shows current rates are at 2002 levels, and 325 basis points more than Oct’03 lows.
Home loan rates have risen around 45% from thier lows (325/750. House prices have risen 50-100% or even more in this period. Builders and mortgage companies have so far largely claimed that there is no let up in demand. However, this is clearly an unsustainable situation. Demand has to slow down at these rates. With interest rates increasing so much, India’s equity rally could be over too

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