Israeli Mortgage Market Grows 14% in First Half of 2026 Amid Rising Public Confidence

Bank of Israel data for June 2026 reveals a significant acceleration in the mortgage market activity. In June alone, new housing mortgages totaled 11.056 billion shekels, marking the highest monthly volume since the start of the year and a 14.1% increase compared to May. For the first half of 2026, the total mortgage volume reached 57.1 billion shekels, up 14% from 50.1 billion shekels during the same period last year.

The data also shows a growing preference for the prime-linked mortgage track, which increased its share from 18% to 21% of all new mortgages. Concurrently, the weighted average interest rate on mortgages declined to 4.47%. The Association of Mortgage Advisors interprets these trends as signs of a gradual shift in borrower behavior, reflecting increased public confidence in the new interest rate environment after a prolonged period of uncertainty.

Avi Yosupov, Deputy Chairman of the Association, emphasized that June’s figures indicate more families are returning to make decisions and engage in the housing market. He noted that mortgage data often lags behind actual purchase transactions, especially in the new housing sector, but the changes in mortgage composition and volume suggest growing trust in the current financial conditions.