Mortgage Lending Hits 11.6 Billion Shekels in July Amid Housing Market Misinterpretation

In July 2026, mortgage loans taken in Israel totaled approximately 11.56 billion shekels, marking a significant monthly figure. The cumulative mortgage volume since the start of the year is about 13% higher than the same period last year, with projections suggesting the annual total could reach around 118 billion shekels if the current pace continues.

Data also reveals a shift in mortgage types: loans linked to the Consumer Price Index (CPI) dropped to 9% of new mortgages, while prime-linked loans increased to 22%. Variable interest rate loans not tied to the CPI remain a substantial portion, and bridging loans accounted for nearly 14% of the total. Long-term housing loans constitute about 82% of all mortgage credit.

The Israeli Builders Association emphasized that these large figures primarily reflect transactions agreed upon months or even years ago, as buyers often take mortgages only when payment to contractors is due. Therefore, the July data does not necessarily indicate a new surge in housing demand. The association warned that misinterpreting these numbers could lead to complacency amid the ongoing housing crisis.

They urged government leaders to maintain focus on housing market reforms before the upcoming elections, comparing the housing challenge to national security issues. The association highlighted the housing crisis as a critical economic threat to young couples in Israel.