The mortgage interest rate rose for the first time in two months.
The average index-linked mortgage interest rate rose by 0.03% in the first half of November 2005 to 4.22%. The interest rate on index-linked mortgage rose for the first time in two months, according to an analysis of mortgage banks’ figures by the Bank of Israel.
The mortgage interest rate rose moderately considering the 0.5% rise in the interest rate over the past two months. The interest rate is projected to rise further in the coming months. The average index-linked mortgage interest rate at mortgage banks has fluctuated between 4.14% and 4.22% since May.
The current average index-linked mortgage interest rate is 0.78% below the 5% rate in January 2005, and 2.98% below the peak rate of 7.2% three years ago.
The lowest average index-linked mortgage interest rate is for short-term loans up to five years 4.03%; the highest average index-linked mortgage interest rate is for long-term loans of over 20 years 4.82%.
Published by Globes [online], Israel business news - www.globes.co.il - on November 13, 2005