Mortgage Lending Hits Highest Monthly Volume in Israel Since Early 2026

Israel's mortgage market saw a significant surge in June, with mortgage loans totaling 11.056 billion shekels, marking the highest monthly volume since the start of 2026 and a 14.1% increase from May. According to Bank of Israel data, the first half of 2026 recorded mortgage lending of 57.1 billion shekels, up 14% from 50.1 billion shekels in the same period last year. This growth coincides with a rise in the share of prime-linked mortgages, which increased from 18% to 21% of all new mortgages, alongside a decrease in the weighted average interest rate to 4.47%.

Mortgage advisors note that the market data typically reflects transactions finalized months earlier, especially in new housing, and may lag behind current purchase activity. However, the upward trend in mortgage volumes, the strengthening of prime-rate loans, and the falling average interest rate indicate growing public confidence in the new interest rate environment after a prolonged period of uncertainty. Avi Yosupov, Deputy Chairman of the Mortgage Advisors Association, emphasized that these figures show a gradual behavioral shift among borrowers, with more families actively making decisions and engaging in the housing market. He highlighted that the evolving mortgage mix and increased lending volumes demonstrate strengthening trust in the current financial conditions.

The data suggests a positive momentum for the mortgage sector in Israel, reflecting increased borrower confidence and a potential stabilization of the housing market amid changing interest rates. Further monitoring will be needed to assess if this trend continues in the coming months.