Inflation vs. Interest Rates: The High-Stakes Battle for Homebuyers

The recent cut in the repo rate to 6.25% is likely to soften homebuyers' borrowing costs in 2025. This action is likely to spur economic growth by lowering the cost of home loans, which could fuel real estate demand. But inflation is still a worry, as higher property prices might neutralize some of the gains from falling interest rates. This notwithstanding, experts opine the rate cut will propel first-time home buyers, particularly in the low-end housing segment, as long as banks relay the gains appropriately.

 

Source: CNBC TV18, The Economic Times, The New Indian Express