Israeli Mortgage Market Hits 11 Billion Shekels in June 2026 Amid Changing Loan Mix

The Israeli mortgage market reached a new high in June 2026, with total mortgage volume hitting 11.056 billion shekels, marking a 14.1% increase from May, according to Bank of Israel data. The first half of 2026 saw mortgage lending totaling 57.1 billion shekels, a 14% rise compared to the same period last year. This growth largely reflects transactions on new apartments, often based on deals signed weeks or months earlier.

A notable shift in mortgage financing patterns emerged, with the prime-linked loan track increasing its share from 18% to 21% of new mortgages. Concurrently, the weighted average interest rate on mortgages declined to 4.47%. Experts attribute these changes to borrowers reassessing their financing strategies amid the new interest rate environment.

Avi Yosupov, Deputy Chairman of the Mortgage Advisors Association, noted that more families are actively making decisions and engaging in the market, indicating growing public confidence in the current interest rate landscape. Eyal Elhiani, CEO of Luzon Credit and Finance Group, added that the rise in mortgage volume also reflects more sophisticated financial planning, with borrowers seeking to ease monthly repayments and capital requirements by blending bank and non-bank financing.

Industry insiders caution that despite the increase, it is too early to confirm a broad market trend across the entire housing sector. The data primarily reflects contractor deals finalized earlier, suggesting the current figures may not yet represent immediate market conditions.