Why bank deposit rates are not rising as much as loan rates after RBI's repo rate hikes

Mortgage Rates Creep Lower, While Home Prices Remain High. NBC reports that mortgage rates have finally started to come back down following a dramatic rise in the housing market. On November 16, Fannie Mae said interest rates on 30-year fixed-rate mortgages were down to 6.73%. . In October, rates peaked at over 8%. . The lower rates have caused demand for mortgages to slowly creep higher. . Despite the positive change, the Mortgage Bankers Association said demand was 12% lower in early November than it was at the same time last year. While borrowing costs on mortgages have reached a two-decade high, shortages in the housing market continue to drive prices higher. The Federal Reserve has been raising rates in an attempt to manage high inflation, increasing its benchmark rate from near-zero last year to as high as 5.5% in July of this year. The hikes have driven up rates for mortgages, auto loans, credit cards and other financial products. . Signs of inflation starting to fade have fueled predictions that the Fed may be satisfied with its efforts to bring prices under control. NBC reports that lower rates may not make homes more affordable over the long term, as prices tend to go up when rates fall because of increased buyer borrowing power