South Africa repo rate unchanged, but housing market momentum continues

Published in January 2026

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The South African Reserve Bank has announced that the repo rate will remain unchanged at its latest Monetary Policy Committee (MPC) meeting.

Given the current economic backdrop, expectations were high that the year might begin with further relief for consumers. South Africa has benefited from a resilient rand and the lowest average inflation rate seen in more than two decades – conditions that often create room for interest rate cuts.

However, it’s important to view today’s decision in context. Since September 2024, the Reserve Bank has already reduced interest rates by a cumulative 150 basis points. These cuts have materially improved borrowing conditions and continue to support affordability across the housing market.

Lending conditions remain supportive

Despite the pause, momentum in the property market is clearly building. BetterBond’s January data shows that home loan applications are up 8.9% year-on-year, reflecting growing confidence among buyers and renewed activity across price bands.

Encouragingly, affordability pressures for first-time buyers are easing. The average deposit required from first-time purchasers has declined by 15% compared to the same period last year. This reduction is helping more aspirant homeowners take their first step onto the property ladder – a critical driver of long-term market health.

What this means for homebuyers

While interest rates have not been reduced further at this meeting, the current environment remains far more favourable than a year ago. Lower borrowing costs, improved affordability, and increased bank appetite for lending are combining to create opportunities for buyers who are well-prepared and properly advised.

For homeowners, the cumulative impact of previous cuts continues to offer relief on monthly bond repayments, supporting household cash flow and financial stability.

Looking ahead

With inflation remaining within one percentage point of the Reserve Bank’s 3% target and the rand holding firm against major global currencies, the outlook remains constructive. These conditions suggest that there may still be scope for further interest rate cuts in the coming months, should economic stability persist.

In the meantime, buyers and homeowners are encouraged to focus on what they can control: understanding their affordability, securing the most competitive interest rate possible, and working with a bond originator who can negotiate across multiple banks.

At BetterBond, we continue to see strong engagement from both buyers and lenders – a positive signal that, even with the South Africa repo rate unchanged for now, the property market is moving in the right direction.