According to the latest FNB figures, the household sector credit growth continues acceleration, but there is no improvement in mortgage growth. September's mortgage growth remained unchanged at 4.8% year-on-year and the overall household sector credit growth continued its acceleration from 5.6% to 6.3% year-on-year.
The SARB stats for new residential loans granted showed a significant decline in growth in the 2nd quarter and this weakening in growth in new lending may be just starting to have an impact on the overall mortgage book, causing a levelling off in growth.
According to John Loos, FNB Home Loans strategist, the high household debt-to-disposable income ratio continues to keep the household sector vulnerable to future interest rate hiking or economic slumps.
See attached detailed report.