Although the South African Reserve Bank (SARB) new mortgage loan numbers remain very weak compared to prior years, it is believed that the mildly diminished rates of year-on-year decline in value of new mortgage lending indicate a household sector that has begun to respond positively to sharp interest rate cuts, and that moderate strengthening in the growth rates (slowly away from negative to towards positive growth) will follow. In the coming quarters, new mortgage value growth is expected to rely increasingly on a stronger economy, with the SARB Leading Indicator having started to point the way up, and such mild improvement is expected to lead House Prices slowly out of deflation in 2010.
For more, go here Mortgage Market Update_Sept 2009.pdf