The market hike has affected home loan demand in a number of ways.
- Increased interest rates: The most obvious impact of the market hike has been on interest rates. Home loan interest rates have been on the rise since the beginning of the year, and this has made it more expensive to borrow money to buy a home.
- Higher EMIs: As a result of higher interest rates, EMIs (equated monthly installments) on home loans have also gone up. This means that borrowers will have to pay more money each month to repay their loans.
- Reduced affordability: The combination of higher interest rates and higher EMIs has made home loans less affordable for many people. This has led to a slowdown in demand for home loans, especially in the affordable housing segment.
- Shift in demand: The market hike has also led to a shift in demand from the primary market (new homes) to the secondary market (existing homes). This is because buyers are finding that they can get better deals on existing homes, as sellers are more willing to negotiate prices in a slow market.
Overall, the market hike has had a negative impact on home loan demand. However, it is important to note that the impact has not been uniform across all segments of the market. The impact has been more pronounced in the affordable housing segment, while the demand for luxury homes has remained relatively strong.
It is also worth noting that the market hike is not the only factor that is affecting home loan demand. Other factors, such as rising inflation and economic uncertainty, are also playing a role. As a result, it is difficult to say how long the current slowdown in home loan demand will last.
