Rising mortgage rates won't hit housing sales in India, say experts

The increase in the repo rate and the subsequent rise in mortgage rates are unlikely to have a major impact on residential sales in the country, stock brokerages have said.

Higher mortgage rates will have a lower impact on the Indian housing market than in the US market, said Kotak Institutional Equities (KIE) in a report released on Tuesday.

“The Indian housing market may see some impact on sales, given the moderate increase in equated monthly instalments (EMIs) from higher mortgage rates and negligible defaults,” said KIE.

Domestic mortgage rates have increased by around 90 basis points - similar to the increase in