Mortgage Lending Drops 20.5% in September Ahead of Elections, But Experts Point to Seasonal Factors
Translated & summarized from Maariv by baba
Mortgage lending in Israel fell 20.5% to 8.668 billion shekels in September, according to Bank of Israel data. The Mortgage Consultants Association argues the drop is due to fewer business days during the Sukkot holidays, with daily lending actually increasing. The association also notes that current mortgage activity reflects past deals, not necessarily current apartment purchases.
The story in 5 lines · by baba
- Mortgage lending in Israel decreased by 20.5% to 8.668 billion shekels in September.
- The Mortgage Consultants Association attributes the decline to fewer business days during the Sukkot holidays.
- Daily average mortgage lending reportedly rose by approximately 3% in September.
- The association suggests current mortgage figures reflect past financing deals, not current purchases.
- Total housing mortgage lending from January to September reached 88.3 billion shekels.
Mortgage lending in Israel dropped by 20.5% in September, totaling 8.668 billion shekels, according to Bank of Israel data. However, the Mortgage Consultants Association offers a different perspective, attributing the decline primarily to the reduced number of business days during the Sukkot holiday period.
The association's analysis indicates that the average daily mortgage lending actually increased from approximately 520 million shekels in August to about 536 million shekels in September, a rise of roughly 3%. This calculation assigns half a business day's weight to holiday eves and intermediate days. The association noted similar monthly drops during holiday periods in previous years, such as 19% in October 2024 and 23% in October 2025, reinforcing their view that the September decrease was mainly due to fewer working days.
From the start of the year through September, total housing mortgage lending reached approximately 88.3 billion shekels. Including all-purpose loans secured by residential property, the total lending figure rose to about 93.3 billion shekels. In September alone, these combined loans amounted to approximately 9.1 billion shekels, with all-purpose loans constituting 4.9% of the total.
The association also linked the mortgage lending volume to the maturation of deals previously made under contractor financing promotions. They explained that in transactions where a significant portion of the payment is deferred, the mortgage may be taken out long after the contract is signed, meaning monthly credit figures don't always reflect current apartment purchases.
"The market continues to be strong and stable, operating differently from the weakening real estate market," stated the Mortgage Consultants Association. They believe the discrepancy between a booming credit market and a weaker housing market indicates the fulfillment of past financing deals that are now materializing as mortgages.
