Rhys Dyer, CEO of the ooba Group, comments that today’s (23 July, 2026) announcement has some people breathing a sigh of relief as the repo rate remains pinned at 7.0%, leaving the prime lending rate unchanged at 10.5%. This comes against a backdrop of subdued economic activity, which has slowed as ongoing geopolitical uncertainty continues to weigh on investor and household confidence.
Dyer welcomed the decision, noting that while there is limited room for further interest rate cuts in the near term, maintaining the current rate will help preserve stability in the housing market.
This news follows the recent decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) to hike the interest rate by 25-basis points in May 2026.
The announcement of a hold in rates, after a 25bps increase 2 months ago, comes against a backdrop of subdued economic activity, which has slowed as ongoing geopolitical uncertainty continues to weigh on investor and household confidence. Meanwhile, global oil prices are approaching $100 a barrel – a six-week high – amid escalating tensions in the Middle East, while the latest minutes from the US Federal Reserve highlight persistent concerns around inflationary pressures stemming from tariffs, higher energy costs and increasing demand driven by AI-related investment.
With these factors in mind, Dyer welcomed the SARB’s decision.
“In an environment characterised by global volatility and persistent inflationary risks such as this week’s announcement of a consumer inflation figure of 5.0% for June, maintaining the current rate supports confidence among homebuyers and homeowners. Stable borrowing costs allow consumers to plan with greater certainty and should help sustain momentum in the residential property market,” he says.
SA housing market holds firm despite geopolitical tensions
Dyer shares that against the odds, South Africa’s housing market has remained resilient, largely supported by relatively stable interest rates and the banks’ willingness to lend at high loan-to-values (LTV) coupled with competitive rate concessions.
Looking to first-time homebuyers – a critical portion of the market that remains more sensitive to macroeconomic factors – Dyer notes that they remain active, accounting for 48% of all home loan applications during the first half of the year despite getting one year older during Q2 ’26 (aged 36).
“Our data shows that while it is taking somewhat longer to enter the housing market, the majority of our young homebuyers still have a strong affinity for homeownership. Data also shows a surge in zero-deposit and cost-inclusive home loans in the overall figures, accounting for 56.9% and 6.1% of all applications, respectively, compared to a year ago.”
Looking to the remainder of 2026
Dyer believes that while ongoing geopolitical uncertainty and global economic pressures will continue to influence demand for new property sales in the market, South Africa’s housing sector remains well-positioned to navigate the challenges ahead. “Stable interest rates, resilient homebuyer demand and shifting regional investment patterns continue to provide a strong foundation for measured growth,” he says.
“The housing market has shown resilience in the face of significant uncertainty. While we are unlikely to see a rapid acceleration in activity in the short-term, the underlying fundamentals remain sound. The fact is that homebuyers are adapting, lenders continue to support the market and regional growth opportunities are creating new avenues for investment” he concludes.
