Housing finance major, Housing Development Finance Corporation (HDFC) is likely to go for a dip in interest rates of home loans provided the central regulator Reserve Bank of India goes in for a rate dip.

According to MD of the HFC, Ms Renu Sud Karnad, "If market rates come down, it normally takes us two-to-three months to pass it on because our liabilities get re-priced."

With continously soaring prices of loans, customer sentiments are getting hurt and they seem to be withdrawing their steps towards purchases.

However she said that, "There is no concern or worry among young, middle-income Indians wanting to buy a house except in Mumbai, which is expensive."

Also the smaller cities like Baroda, Lucknow, Chandigarh and Salem have observed sizable growth in the home oan segment.