Growth in outstanding credit and mortgage balances in the South African household sector remained relatively low in the first six months of 2014.
Interest rates were hiked further in July and a continued upward trend expected in rates towards the end of 2014 and through 2015 will contribute to household credit and mortgage balances growth remaining in single digits over this period. Many consumers are expected to continue to experience financial strain on the back of low employment growth, rising inflation and interest rates, while consumer confidence will most likely remain relatively low. The combined effect of these factors is set to adversely impact credit affordability, accessibility and demand, which will lead to a subdued residential property market performance.
For more information click Credit And Mortgage Advances for Jun 2014