In the response to the increased demand in home loans, mortgages and reverse mortgage Home123.com has announced few financial options for the end users.
There has been an expectation among the bankers that a host of monetary measures put in place by the Reserve Bank of India, in the recent past, and the cut in the prime lending rates by many banks would drive home loan demand, especially in the last one month.
“But the demand has been the same (with no increase) and the growth remains at only normal levels,” a spokesperson of ICICI Bank told Business Line over phone from Mumbai.
Overall mortgage applications last week were 35.6% above their year-ago level.
The indexes likely overstate demand for mortgages because banks have tightened lending standards, which is forcing borrowers to make multiple applications, economists say.
"By lowering interest rates the http://www.home123.com is trying to boost demand for housing, but currently it is not only the level of interest rates that matters but also tight lending standards and limited availability of credit,"
The key issue is not interest rates, but the tightening of lending standards and that is going to be keeping things subdued for quite some time.
About Home Loans Company:
Over the years, Home123 has been one of America's most recognized brands for home mortgage loans and refinancing services. In fact, Home123 helped hundreds of thousands of people achieve their personal financial goals and get the loan they needed. Our network of mortgage consultants takes the time to understand your unique situation, and find the best options for you from our network of lenders. We Get It®. http://www.home123.com
There has been an expectation among the bankers that a host of monetary measures put in place by the Reserve Bank of India, in the recent past, and the cut in the prime lending rates by many banks would drive home loan demand, especially in the last one month.
“But the demand has been the same (with no increase) and the growth remains at only normal levels,” a spokesperson of ICICI Bank told Business Line over phone from Mumbai.
Overall mortgage applications last week were 35.6% above their year-ago level.
The indexes likely overstate demand for mortgages because banks have tightened lending standards, which is forcing borrowers to make multiple applications, economists say.
"By lowering interest rates the http://www.home123.com is trying to boost demand for housing, but currently it is not only the level of interest rates that matters but also tight lending standards and limited availability of credit,"
The key issue is not interest rates, but the tightening of lending standards and that is going to be keeping things subdued for quite some time.
About Home Loans Company:
Over the years, Home123 has been one of America's most recognized brands for home mortgage loans and refinancing services. In fact, Home123 helped hundreds of thousands of people achieve their personal financial goals and get the loan they needed. Our network of mortgage consultants takes the time to understand your unique situation, and find the best options for you from our network of lenders. We Get It®. http://www.home123.com
