Household and mortgage advances seen stabilizing
JOHANNESBURG, (CAJ News) – ABSA Home Loans has projected growth in household credit balances, including mortgage balances, to remain in single digits in the rest of the year and through next year.
The projections follow the value of outstanding credit balances in the South African household sector increasing by 4,2 percent year-on-year up to the end of August 2015, with growth rising above the 4 percent level for the first time since July last year.
This was the result of faster growth in the components of mortgage balances, overdrafts and general loans and advances, whereas growth in installment sales balances dropped to its lowest level since May 2010.
Jacques du Toit, Property Analyst at Absa Home Loans, said trends in and prospects regarding the economy, household finances and consumer confidence will remain important in the demand for and growth in household credit and its various components.
Lending rates are forecast to rise again before year-end and in 2016, which will affect the affordability of credit and consumer finances over a wide front.
“Against this background, growth in household credit balances, including mortgage balances, is forecast to remain well in single digits in the rest of the year and through next year “, said du Toit.
– CAJ News
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