India's Home-Loan Rates Outdo US as Borrowing Costs Shift Globally
The cost of borrowing for home loans in India is now lower than in the US. This shift has been driven by higher US Treasury yields, which have climbed to a 20-year high of 5.167% as of September 25, 2026. The US 30-year fixed home-loan rate has also increased to 7.37%, while India's baseline home-loan rates start at around 7.10% for eligible borrowers.
The difference in borrowing costs is particularly striking compared to the post-Covid period, when US home-loan rates were around 2.65% against 6.50% in India. By 2023-24, the rates had risen to around 7.80% in the US and 8.50% in India.
The drivers of the higher US Treasury yields include concerns over the country's large debt burden, sticky core inflation, and tariff uncertainty, which have constrained the Federal Reserve's room to lower rates.