mortgage (photo by vecteezy)
Today (Monday) the supplementary report of the Bank of Israel on the mortgage market for the month of June was published, when new data reveal that the market is still not cooling down and mortgage takers continue to take on greater and greater risks, despite the continuous jump in interest rates.
The market always reacts late to this, but the Association of Mortgage Consultants stated: The supplementary report of the Bank of Israel reveals that the trend of stagnation in the mortgage market continues, in all parameters, also in the number of mortgage portfolios there is a slight decrease to 11,880 mortgage portfolios compared to 11,978.
More in-
The volume of mortgages in June is NIS 11.8 billion, but 45 percent of the mortgages have a high financing rate of at least 60 percent of the apartment’s value. 44 percent of mortgages have a repayment higher than 30 percent of disposable income.
And the average mortgage, which dropped to NIS 988,000 compared to NIS 995,000 the previous month, has a different meaning/interpretation: this is the continuation of the halt in the market resulting from the increase in interest rates, in the coming months we will see a continued decrease mainly in the number of mortgages. The Bank of Israel also understands that there is a problem with this.
Mortgage consultant Tzachi Grossman said on the Savings Program: “In July there will be a change of direction, there are calls from banks that feel a strong decrease in activity, suddenly the volume is not coming and they are hungry for transactions. You will already see a certain decrease in July and in August and September a real decrease.”
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