Mortgage rates are lower while the average salary is higher.
The Mishkan Hapoalim Mortgage Bank Homebuyers Index rose for the third consecutive month in June, despite rising home prices. The index rose 0.5% in June, following gains in May and April.
Factors supporting the improvement in the condition of homebuyers were the decline in mortgage interest rates, the rise in the average national salary, and the ongoing improvement in the labor market. These factors overwhelmed the effect of higher home prices, said Bank Hapoalim.
The average interest rate on 17-20 year fixed-rate, CPI-linked mortgages, as published by the Bank of Israel fell to 3.28% in June from 3.36% in May. "This is the lowest interest rate since the Bank of Israel began publishing this figure in 1996," said Bank Hapoalim.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
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