2024-04-08 13:54:18
According to Adi Nino, CEO of Elder Mortgages, “The announcement of the second interest rate in 2024 does not dramatically change the real estate and mortgage market. The various statements about the expectation of a decrease in interest rates this year are expected to come true later this year. Due to the current situation, maintaining the status quo is currently the solution The best for all parties. This decision also probably stems from the increase in the dollar exchange rate and a reasonable inflation rate of 2.5% in February, which is within the target range of the Bank of Israel. Later this year we expect further interest rate cuts, which will affect the mortgage market mainly from a perception point of view. This will give The apartment-buying public has patience, and so do the sales managers in the field.”
“In reality, the owners of a NIS 1 million mortgage, one third of which is the prime component, will benefit from each 1/4 percent reduction of about NIS 100 per month. Maintaining the interest rate level gives oxygen to the housing market despite the fear of the political and security situation and outlines a path for the market’s recovery later this year. Recently, we Experiencing an increase in real estate sales and an increase in new mortgage applications. The data on the increase in contractor loans recently presented by the banks indicates the attractiveness of sales operations in the market. The continuation of the recovery is expected to materialize in the coming year, when projects that were sold a year ago under financing conditions of 20/80 will come to fruition. Then the market will be tested alongside the continued lowering of interest rates, when housing developers will realize existing assets and start paying for a new mortgage. Appropriate preparation of the households, especially with mortgage consultants, will allow the event to go smoothly without failures in financing transactions.”
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