Does a more “Gradualist” SARB mean a different approach by mortgage lenders?

In the Housing Market, both the mortgage lending institutions and the mortgage borrowers alike have long been known for their “pro-cyclical” behavior, lending/borrowing more when interest rates are low and becoming more conservative in their approach when interest rate rise.

But in more recent years, a very different SARB (South African Reserve Bank) compared to the 1990s may have encouraged the Residential Mortgage Market to take longer in its response to key cyclical changes, not responding immediately to interest rate hiking when it starts but only later when rising “mortgage stress” starts to set in.

Read more here: Property Barometer – LTP – Analysis – August 2016