Prime Rate

Bank of Israel data shows prime-rate mortgages surged to 23% of total housing loans in September, reaching 2 billion NIS amid falling interest rates.

The share of the prime rate track in mortgages has almost doubled within a year, while the public is moving away from CPI-linked tracks. The choice reflects an expectation for continued interest rate cuts in Israel, but the global picture has changed: long-term bond yields are climbing, markets in the USA and Europe are pricing in the possibility of rate hikes, and further cuts by the Bank of...