Homebuying decisions may be impacted if mortgage rates cross 9%: Survey

Nearly 90 per cent of respondents feel that their decision to buy residential properties will be significantly impacted if mortgage rates exceed 9 per cent, according to a survey conducted by FICCI and Anarock. Industry body FICCI and real estate consultant Anarock on Friday released their joint 'Homebuyer Sentiment Survey', with a sample size of 7,615 people, at a real estate conference here. "In a recent survey, over 71 per cent of respondents indicated that their home-buying decisions would remain unaffected if rates stay below 8.5 per cent. However, if rates exceed 9 per cent, then it will have a significant impact on over 87 per cent of respondents. For rates between 8.5 per cent and 9 per cent, about 54 per cent expect a moderate influence on their choice," the report said. Among other findings, the survey found that real estate is the most preferred asset class for investment for over 59 per cent of respondents. The Indian residential market continues to be predominantly dri