Have home loan rates reached rock bottom?

At sub-7 per cent, the rates are at their historic low. In 2003 and 2004, it was 7.25 per cent; and in 2011, as high as 11.75 per cent

In October 2003, ABN Amro Bank announced its entry into India’s mortgage market, offering 6 per cent interest rate on home loans in the first year and 6.5 per cent in the second year. The special product, called “super saver loan package”, was designed to woo at least 10 per cent of then Rs 50,000-crore mortgage market.

Such loans were linked to the prevailing floating interest rate of the bank from the third year. Around that time, the home loan rates of other banks were in the 7.25 per cent to 7.75 per cent range. The Dutch bank’s floating rate was