Finally Psu banks are cutting rates marginally to attract home loans , while the loan machine ICICI bank is still staying put.I wonder why? is it
1. Home prices stuck in an inflationary bubble? Lack of demand ? Builder lobby ramping up and artificially trying to control prices?
2. Home purchases giving investors Negative Return / Rent received on the house is below Fixed deposit returns?
3. Mounting maintainance costs dissuading investors and end users alike?
4. Psu banks dont want to take the risk of giving home loans to people having a weaker financial background? Do they prefer a lower risk return beta and give out safer loans?