For the first time, home loan interest rates in India and the United States are almost the same — something that hasn’t happened before.
In the past, the US had very low mortgage rates, especially after 2008 and during COVID-19, around 2.5–3%. Meanwhile, home loan rates in India were much higher, around 10–12%, mainly due to inflation and the risks of a growing economy.
But things have changed recently. Inflation in the US rose sharply after 2021, and the Federal Reserve responded by raising interest rates to over 5%. This caused mortgage rates in the US to jump to about 7–7.5%.
In India, inflation was under constant check as the Reserve Bank of India and the government policies managed it well. The RBI reduced repo rates slowly, which helped keep home loan rates lower — now around 8–8.75%, one of the lowest in recent times.
This closing gap in interest rates between the two countries shows how global economic changes and different bank strategies are reshaping financial trends.
