Mortgage rates in India and housing sales

     Stock brokers in India says that, with the increase in repo rate and the rise in mortgage rate makes an impact on the sales in the country. Higher mortgage rates when compared to the US market makes a lower impact in Indian market . Domestic mortgage has increased by 90 basis points. The main factors are 1) salaried individuals will get an increment of 5-7 % with domestic inflation  around 5-6 %, 2) a new homebuyer can increase the tenure of the loan by keeping the EMI stable. Its also said that rise in mortgage rates and inflation will make developers difficult to raise prices further. Combination of rising interest rates, high inflation and rising housing prices and low supply of houses for sale has made buying a house most expensive. Inflation has caused to the rise of not only mortgage rates but the prices of day to day items too. Let us take an example regarding to housing loans, Lodha is offering fixed-rate loans for its projects, but the income growth will take care of any additional interest burden. The experts in India says that rise in Mortgage rates won't be affecting housing sales in India. The mortgage rates of some banks are ICICI bank (9.40% onwards), HDFC (8.75%), Axis Bank (10.50), Union Bank of India (9.80), Federal Bank (10.10%), HSBC (8.80) and IDBI bank (up to 11.80%).