ICICI Bank and HDFC have increased home loan rates by 0.75 percentage points, moving quickly to preserve margins in the wake of RBI raising key interest rates. This is the second hike from the top two home loan providers in the phase of a month. ICICI Bank hiked the floating reference rate (FRR) for consumer loans, which also includes home loans, to 14.25 from 13.5 per cent, with effect from July 31. HDFC's adjustable rate home loans will be priced at a minimum of 11.75 per cent with effect from August 1. Its fixed rate remains unchanged at 14 per cent per annum. The bad news is that a 0.75 percentage point hike will mean customers on floating rate home loans will have to pay an additional EMI of Rs 51 per lakh on a 20-year term. The good news is that the increase in interest rates may be offset by a fall in real estate prices.