Average Mortgage Nears Record High Despite Housing Market Slowdown in Israel

In July 2026, the average mortgage amount in Israel reached approximately 1.117 million shekels, close to the all-time high of 1.129 million shekels recorded in March 2026. This occurred even as the housing market has been slowing down for several months. The total volume of mortgages taken out in July hit a new annual peak of 11.563 billion shekels, indicating that 2026 may see one of the highest yearly totals for new mortgages in recent history.

The average mortgage amount remains elevated partly due to rising home prices. According to the Central Bureau of Statistics, the average home price in the second quarter of 2026 was about 2.435 million shekels, marking a 3.7% increase from the previous quarter and a 7.9% rise compared to the same quarter in 2025. This trend supports a significant share of new mortgages being taken out for high-value properties.

In July, around 14.5% of new mortgages, totaling approximately 1.67 billion shekels, were for properties valued at 5 million shekels or more, while 43% were for properties worth 3 million shekels or more. Additionally, loans known as "bullet and balloon" loans, commonly used by developers in housing projects, amounted to 1.609 billion shekels in July. Although this is a high figure, the proportion of these loans relative to total mortgages slightly decreased to nearly 14% in July, down from 14.7% in June and 15.4% in April and May.

These figures reflect ongoing strong demand for mortgages despite the broader housing market slowdown, driven in part by continued investment in expensive properties and developer financing structures.