Israeli Mortgage Volume Surges to Record 11.5 Billion Shekels
Israeli mortgage volumes hit a record 11.5 billion shekels in July, driven by falling interest rates and a wave of refinancing activity across the housing market.
In July, mortgage volume surged to a record 11.5 billion shekels, defying expectations of a sluggish housing market and revealing a 13% year-to-date increase in borrowing.
The main driver behind this trend is falling interest rates, which prompted a wave of refinancing. With rates dropping further, August mortgage volumes remained robust at 10.899 billion shekels, well above the annual average.
Following consecutive rate cuts totalling 1.25%, refinancing activity jumped by nearly 20%. While August figures dipped slightly below 11 billion shekels, the past three months mark the strongest period for mortgages since the outbreak of the war.
Market shifts show CPI-linked tracks dropping to around 9%, while the prime track rose to about 22% and non-linked variable rates strengthened. Long-term housing credit accounted for 82% of activity, as falling rates reshape borrowing patterns ahead of the upcoming August CPI release.
