Johannesburg - The year-on-year growth in the total value of R1.395 trillion in outstanding credit balances within the South African household sector slowed to 4.1 percent at the end of July, Absa said on Friday.

This was compared to the 4.3 percent seen at the end of June, property analyst Jacques du Toit said in a statement.

Total private-sector mortgage balances, including both commercial and residential mortgages, grew 3.7 percent year-on-year up to the end of July, compared to 3.4 percent at the end of June.

This was largely driven by the 6.8 percent growth year-on-year in commercial mortgages in the first seven months of 2014.

“Growth in the value of R824.3 billion in outstanding household mortgage balances remained relatively low at 2.6 percent year-on-year at end-July,” Du Toit said.

“Demand for residential mortgage finance is to a large extent driven by the state of household finances and consumer confidence.”

Many households were experiencing financial strain, while consumer confidence remained low in the first half of the year.

“In view of these developments, growth in household credit, including mortgage advances, is expected to remain subdued up to the end of the year and in 2015,” he said. - Sapa