TMTPOST--Japan’s real estate shares experienced their steepest decline since March 2020 due to worries that increasing mortgage rates will reduce demand, following the central bank's decision to raise its benchmark interest rate. A real estate stock index on the Topix dropped by as much as 6.4%, making it the worst-performing sector on the broader index. Leading property companies Mitsui Fudosan Co. and Mitsubishi Estate Co. saw declines of at least 7%, while Sumitomo Realty & Development Co. fell by as much as 9.4%. On Wednesday, the Bank of Japan raised its policy rate to around 0.25% from a range of 0 to 0.1%. This move led the country’s largest lender, Mitsubishi UFJ Financial Group Inc., to increase its short-term prime rate, a benchmark for floating-rate mortgages and other loans.