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Israeli Mortgage Activity Shifts Dramatically in September
In September 2026, Israeli mortgage volume fell 20.5% from August to 8.668 billion shekels, but prime rate mortgages surged 150%. Index-linked mortgages decreased significantly, while non-indexed loans dominated. Despite the monthly dip, year-to-date mortgage activity is up 12% for 2026.
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What happened
- 01Prime rate mortgages in Israel jumped 150% in September 2026 compared to the previous year.
- 02Total mortgage volume in Israel decreased by 20.5% in September 2026 from August.
- 03Index-linked mortgages saw a significant drop in their share of new loans.
- 04Year-to-date mortgage activity in 2026 is up 12% compared to the same period in 2025.
- 05The shift to prime rate mortgages is linked to expectations of future interest rate cuts.
Experts cite interest rate expectations for the prime rate increase, warning of associated risks.
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