New Delhi, June 6 -- The recent reduction in the repo rate to 5.5% marks a much-needed and welcome move for India's housing sector. After years of economic volatility triggered by the pandemic, the economy has now entered a more stable phase, allowing the RBI to take a softer stance. This rate cut directly impacts the real estate industry, particularly in the home loan segment, which constitutes a significant share of lending portfolios for banks.

With this move, home loan interest rates are expected to come down significantly. Where rates previously started at around 8.25%, they could now begin at approximately 7.5%, especially for borrowers with strong credit scores. This shift means a notable decrease in monthly EMIs. For instance, o...