The market is still boiling – only a slight decrease in taking mortgages in June

by time news

The volume of mortgage transactions in June amounted to NIS 11.88 billion, according to Bank of Israel data published today (Monday). This is a slight decrease of 0.8% compared to the previous month and an increase of 2.5% compared to June last year. The number of loans was 12,024, similar to the previous month and similar to the corresponding period last year.

In the last year the volume of mortgages amounted to NIS 144.9 billion and since the beginning of the year to NIS 68.9 billion. The total number of transactions made in the first half of 2022 is 71.2 thousand, compared to 60.15 thousand in the corresponding period.

The data also shows that the volume of mortgages with leverage of 60%-70% in the last month is 46% of the volume of mortgages taken out during the month.

Also, the average mortgage in June transactions is NIS 988,000. When offsetting the apartments for which credit is given as part of an apartment at a reduced price, the average mortgage is NIS 1.02 million. The number of loans for investment apartments is on the rise, with a total of 1,320 transactions totaling NIS 1.2 billion, a rate of 11% of the total number of transactions, a slight increase compared to the previous month.

The balance of the public’s debts to the banks has crossed the 500 billion shekels and as of June stands at 505.34 billion – an increase of 1.5% compared to the previous month and an increase of 18% compared to the corresponding period last year.

June mortgage data were affected from the Bank of Israel’s increase in interest rates in April. The interest rate on the mortgage given by the banks increases when the Bank of Israel raises the interest rate, and vice versa – decreases when the Bank of Israel reduces the interest rate. However, there is a gap between the actual interest rate decision and the impact on the mortgage market.

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