This bit of news made news :)
The RBI reduced its repo rate. This is the rate at which banks can borrow from RBI. So essentially, banks like SBI etc. can borrow money from RBI at lower rates of interest (0.25% lower) than earlier. This means that these banks can pass on 0.25% lower interest rates to us customers! Right?
Right and wrong! Yes, banks can start charging customers lower interest rates on all types of loans; but they need to consider their own challenges (like how badly unbalanced their books are due to NPAs) and hence may not pass the entire 0.25% benefit to the customer.
To answer your specific question, after this rate cut in August, banks have lowered interest rates on home loans between 0.1% and 0.2% - so, if a loan was earlier available at 8.65% interest rate, it is now available at 8.45% or 8.55% (depending on some internal criteria).