Mortgage Takers Bet on Continued Rate Drops, Favoring Prime Rate Linked Loans
Translated & summarized from TheMarker by baba
Israeli mortgage lending fell 20% in September to NIS 8.7 billion due to the High Holidays, though adjusted figures show activity similar to August. Despite the monthly decrease, lending from January to September is up 12% compared to 2025. Mortgage takers are increasingly opting for loans tied to the prime interest rate, anticipating further rate reductions.
The story in 5 lines · by baba
- Israeli mortgage lending dropped 20% in September to NIS 8.7 billion due to holidays.
- Adjusted for holidays, September mortgage activity was similar to August.
- January-September mortgage lending increased 12% compared to the same period in 2025.
- Borrowers are favoring loans linked to the prime interest rate.
- This trend suggests an expectation of continued interest rate decreases.
The Israeli mortgage market saw a significant 20% drop in September, with NIS 8.7 billion in new mortgages issued, compared to August. This decline is attributed to fewer working days during the High Holidays. However, when adjusting for the holiday period, the volume of mortgage lending remained similar to August's activity. Despite the monthly dip, the period from January to September showed a 12% increase in mortgage lending compared to the same period in 2025.
