As of Sunday, June 25, 2017, the Central Bank of Israel (BCI) announced for the month of May 2017 4.55 billion shekels contracted. This figure falls in a context of decline from May of last year about 15% but is however the largest volume of this year.

At the same time, borrowing rates fell slightly in May 2017.

This BCI publication allows us to see a decrease in the volume of mortgages contracted in the way that it also shows us that Israeli households continue to borrow with a total of 4.55 billion shekels in the form of mortgages (still this single month of May 2017)

However, there is a rational explanation for this increase, indeed, during the month of April and the Passover Jewish banks are experiencing a significant slowdown in their activities, but also the operation of the Minister of Finance with its housing operation in Low price is for something and it is expected that this figure will explode in the near future.

As part of its popular low-cost housing program, the government is launching a major lottery including 32,000 apartments in different cities across the country. For the moment, more than 10,000 buyers have not yet applied for bank loans.

Regarding the average rate of mortgages, it fell in May 2017. In fact, it rose to 3.74% against 3.88% in April 2017 for the average rate indexed to inflation; Regarding the average rate not indexed to inflation it rose to 4.31% against 4.39% in April 2017.

 

Source: Real Estate Credit in Israel