Even Operation Protective Edge has not deterred Israelis from taking new mortgages. NIS 5 billion in new mortgages was given out in July, 8.7% more than in June, and the highest figure so far in 2014. The July figure was 16% above the 2014 monthly average in the first half of the year.
The lowering of the interest rate by 25 basis points to 0.5% from 0.75% for August will only serve to further heat up the mortgage market.
During July the proportion of mortgages with variable interest rates rose by 8% to NIS 2.8 billion, while the proportion of mortgages with fixed interest rates rose 9% to NIS 2.2 billion.
The July mortgage taking figure was the highest since June 2013 when NIS 5 billion was also taken. In the first half of 2014 the monthly average for new mortgages was NIS 4.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2014
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