Israeli Mortgage Volume Reaches 9.3 Billion Shekels in October
The Bank of Israel reported that October mortgage volumes reached 9.3 billion shekels, bringing the yearly total to 97.5 billion shekels amid a booming lending market.
The Israeli mortgage market continues to defy expectations, with the Bank of Israel reporting that housing loan volumes reached 9.3 billion shekels in October. This robust activity persists despite a broader slowdown in the physical real estate sector.
Since the beginning of the year, cumulative mortgage performance has reached 97.5 billion shekels, marking a roughly 14% surge compared to the same period last year. This figure approaches the record-breaking pace set during the peak residential real estate year of 2021, even though current transaction volumes remain about 40% lower than that historic peak.
According to the Association of Mortgage Consultants, data analysis reveals notable shifts in borrower behavior and loan composition. The share of prime-rate tracks continued to climb from 26% to 28% at the expense of variable non-linked tracks, while index-linked tracks accounted for just 8%, one of the lowest proportions in recent years.
Concurrently, the weighted nominal interest rate rose from 4.35% to 4.42%, a level higher than the previous three months. The weight of bridge loans edged up slightly from 12.8% to 13.0%, while loans for any purpose remained stable at 4.9%.
Experts note that the mortgage market continues to exhibit strength that appears disconnected from the lower volume of physical housing transactions. This gap illustrates that high financing volumes are primarily driven by the maturation of past transactions and developer financing promotions.
