Mortgage taking hits four-year high

Mortgage

The Israeli public took mortgages worth NIS 6 billion in June, the highest figure since August 2015, the Bank of Israel reports.

The rise in home buying in Israel in recent months is reflected in the mortgage market. In June 2019, mortgages worth NIS 6 billion were taken out by the public, the Bank of Israel reports, up 3% from the preceding month and up 22% from June 2018. This is the largest amount in mortgages taken by the Israeli public since August 2015.

The number of housing deals being closed is on the rise as are prices as people flock to the mortgage banks, in part encouraged by the government Buyers Fixed Price plan (Mechir LeMishtaken) and lower interest rates, which have fallen from 2% at the end of 2018 to 1.6% in recent months.

Between 2016 and 2018 mortgage taking dropped below the NIS 4 billion per month level. In contrast, they have not fallen below the NIS 4 billion mark in any single month this year and June's figure was the fourth largest amount taken in mortgages in a month in the past decade.

Published by Globes, Israel business news - en.globes.co.il - on July 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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