Outstanding credit balances in the South African household sector (R1 699,2 billion) increased by 6,7% year-on-year in the first eight months of 2019, with growth accelerating from 6,3% year-on-year at end-July this year.
A cut of 25 basis points in prime lending and variable mortgage interest rates to a level of 10% per annum in July has most likely contributed to the uptick in the growth in household credit balances and most of its components.
Growth in the value of outstanding household mortgage balances (R993,3 billion and 67,8% of total private sector mortgage balances) came to 4,9% y/y at end-August (4,6% y/y at end-July). This was the highest year-on-year growth in mortgage balances since the end of November 2010.
Trends in and the outlook the macro economy, as well as household sector finances, consumer confidence and property market sentiment will continue to drive the demand for and growth in household credit and mortgage finance.