Household secured credit balances (R1 276,3 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, recorded growth of 5,1% y/y in the 7-month period up to end-July, which was marginally down from 5,3% y/y at end-June.

Mortgage balances growth was also slightly lower at end-July from end-June (see below). Growth in instalment sales balances (R287,2 billion and 22,5% of total household secured credit balances) slowed down further to 7% y/y at end-July from a recent peak of 8,3% y/y at end-April. Growth in household unsecured credit balances (R411,6 billion and 24,4% of total household credit balances) was unchanged at 10,4% y/y at end-July from end-June.

Growth in general loans and advances growth came to 11,2% y/y at end-July, with credit card balances rising by 11,1% y/y. Overdraft balances growth slowed down further to 4,6% y/y at the end of July from a recent high of 7,6% y/y at end-May. Outstanding private sector mortgage balances (R1 456,6 billion and 38,5% of total private sector credit balances of R3 787,8 billion), which include both corporate and household mortgage balances, increased at a rate of 5,2% y/y up to end-July. Growth in the value of outstanding household mortgage balances (R987,5 billion and 77,4% of total household secured credit balances and 67,8% of total private sector mortgage balances) came to 4,6% y/y at end-July (4,7% y/y at end-June).

The value of mortgage balances is the net result of all property transactions related to mortgage loans, including additional capital amounts paid into mortgage accounts and extra monthly payments above normal mortgage repayments. Developments on the front of the macro economy, as well as household sector finances, consumer confidence and property market sentiment will be the driving factors of growth in household credit and mortgage balances, which is forecast at 5,9% and 4,3% respectively for the full year.