Looking ahead to what is likely to drive home loans this year
DESPITE THE challenges of external factors such as ongoing interest rate hikes and rising costs of living, the on-going demand for home loans remained relatively stable in 2022—slightly down on 2021 volumes, but up on 2020 and 2019 volumes.
This sustained demand can be attributed to the following key factors:
* The increasing interest rates over the year, culminating in a prime rate at year end of 10.5%, remains well below the long-term average rate over the past 25-years; and.
* Banks continuing to compete for home loan business by approving loans on attractive terms—both in terms of interest rate and in the granting of 100% loans.
Home loan trends in 2023
Looking ahead, ooba believes that with most of the interest rate hikes now behind us, the following six property trends will lead the way in 2023: