A sigh of relief for local homeowners, here’s why …
The Monetary Policy Committee announced a rate hike cycle previously which saw the prime lending rate climb 5% in the space of just two years.
Homeowners from different parts of the country including Randfontein and Westonaria can breathe a sigh of relief following the announcement of a zero change to the current interest rate.
The Monetary Policy Committee announced a previous rate hike cycle which saw the prime lending rate climb a full 5% (from 7% to 12%) in the space of just two years.
Managing director of the Rawson Property Group, Tony Clarke said, “This has been an exceptionally tough time for South Africans, and property owners in particular. Pegging interest rates at their current levels may be a more conservative approach than many hoped for, but it’s a step in the right direction for the property market.”
He added that more significant relief is predicted towards the end of 2024 when interest rates are expected to begin a slow decline.
“This outcome does rely on local inflation remaining within reasonable bounds, and no further hikes by the US Federal Reserve but for now, all signs point towards stabilisation with a gentle downward trend starting around this time next year,” Clarke concluded.
