Israel Mortgage Arrears Rise in September to 4.23 Billion Shekels
Mortgage arrears in Israel rose to 4.23 billion shekels in September after three months of decline, according to Bank of Israel data. Total mortgage volume reached 8.66 billion shekels despite holiday slowdowns.
Mortgage arrears in Israel resumed their upward trajectory in September, rising to 4.15 billion shekels following three consecutive months of decline, according to data released by the Bank of Israel. Despite the Jewish High Holidays significantly shortening the business month, total mortgage volume remained robust at 8.66 billion shekels.
Market analysis indicates that the previous drop in defaults during June-August was largely driven by intensive bank restructuring efforts for struggling borrowers. However, as bankers' capacity to handle distressed accounts dipped in September, arrears ticked back up. Meanwhile, real estate investors secured the highest average mortgages at 1.26 million shekels, followed by free-market buyers at 1.07 million shekels, and subsidized buyers under government housing programs at 741 thousand shekels.
Looking ahead, financial experts project that October mortgage volumes will surge significantly due to a backlog of pending loan applications carried over from the holiday-shortened month.
