By PropertyFox in Moot

04/10/2023 Interest Rate Announcement Predictions: What Property Buyers in the Pretoria Moot Area Can Expect and How to Prepare
The South African Reserve Bank’s Monetary Policy Committee is expected to announce its decision on interest rates on March 30, 2023. There is a possibility of another interest rate hike, which can affect homeowners and property buyers in the Pretoria Moot area. In this article, we will discuss what to expect from the interest rate announcement and how to prepare for it.

Possible Interest Rate Hike

Many South Africans are hoping for stable interest rates. However, there is a chance that the interest rates may increase by 0.25% to 0.5%, as inflation remains above the Monetary Policy Committee’s midpoint target range. Even though inflation decreased for the third consecutive month down to 6.9% in January, the risks to inflation are still significant.
Following every interest rate hike, there is typically an increase in rental enquiries and fewer queries from interested property buyers. The higher the interest rates climb, the less active the housing market is likely to become. Therefore, it is advisable to prepare for a possible interest rate hike.

Preparing for an Interest Rate Hike

Property buyers in the Pretoria Moot area can take several measures to prepare for an interest rate hike. Firstly, it is essential to prioritize paying off any bad debts before taking on any new debt. Secondly, homeowners should ensure that they keep up with the repayments on their home loan. If things become too tight, homeowners can consider renting out a spare room or downscaling to a more affordable property.
Even though it is challenging to predict what interest rates will do over the year, South Africans can still invest in property. The banks continue to compete for business, with deposit requirements still below 10%, and approval rates remaining above 80%. This means that qualifying buyers can still find mortgage loans on good terms.

Property price appreciation remains flat, which means that buyers can still find good value in the market. While sellers may need to adjust their asking prices to align with the current market conditions, the upside is that property prices are unlikely to plummet compared to other global markets that experienced runaway price growth during the Covid-19 pandemic.

Conclusion

The interest rate announcement can significantly impact homeowners and property buyers in the Pretoria Moot area. While there is a possibility of another interest rate hike, homeowners can prepare for it by prioritizing paying off bad debts, keeping up with home loan repayments, and renting out a spare room or downscaling to a more affordable property. Property buyers can still find good value in the market, and banks continue to compete for business with mortgage loans available on good terms. By taking steps to prepare for interest rate hikes, homeowners and property buyers can position themselves to weather market changes that may arise.