Homeloans enjoy a steady interest rate
While it is unlikely that interest rates will climb this year, Goslett still advises homeowners to leave room in their budget for a possible increase of around 0.5 points during the course of 2021.
The Monetary Policy Committee (MPC) has again announced that interest rates will remain stable, keeping the repo rate at 3.5 per cent and the prime lending rate at seven per cent.
Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, said this was a predictable outcome and unless things take an unexcepted turn, he predicted interest rates are likely to remain steady for the remainder of the year.
“Homeowners and first-time buyers continue to find themselves in a favourable position when it comes to the interest rate on their home loan. “While a further cut would have helped the many South Africans who are struggling to make ends meet within the current economy, keeping rates at this historic low will at the very least make it easier for homeowners to keep up with the repayments on their home loan within this challenging economic climate,” said Goslett.
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While it is unlikely that interest rates will climb this year, Goslett still advised homeowners to leave room in their budget for a possible increase of around 0.5 points during 2021.
“The MPC has warned of two potential increases of 25 basis points in the second and fourth quarters of 2021, but this is all dependent on how the economy performs, and many economists predict that an increase is not likely to be necessary. “However unlikely it may or may not be, homeowners should just bear this in mind when budgeting for the year ahead,” he said.
“If activity continues at this rate, it won’t be long before we shift into a seller’s market where buyers will have to out-bid each other to secure the home. Before this shift occurs, I would recommend that buyers act fast and make the most of the current market conditions.”
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