Home loans rate heads southward: NHB

As the situation on the liquidity front is improving at a fast pace and the cost of funds are going down drastically, the interest rates on home loans are all set to decline by 25-50 basis points, claimed National Housing Bank (NHB) Chairman R V Verma, making it crystal clear that there is no upward pressure and rates are expected to soften in the immediate future. Liquidity has improved in the market and the extent of revision in lending rates will depend on how much the cost of funds comes down, he clarified ensuring that in addition to this the NHB is also reviewing refinance rates — the rate at which it lends funds to commercial banks and housing finance companies.