Mortgage loans in Israel fell by 50%

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Decrease in the number of mortgages in Israel is gaining momentum.According to the Bank of Israel, in February 2023, mortgage loans were taken for a total of 5.73 billion shekels, which is 49% less than in February 2022. This was the lowest monthly rate for mortgages since the first Covid lockdown in April 2020 and similar to monthly rates for mortgages in the second half of 2019, although home prices have risen by 35% since then.

Among the reasons for the low mortgage disbursement rate last month were rising interest rates and concerns about the government's planned judicial reform, which has led to an atmosphere of economic instability and uncertainty in Israel.

Since November 2022 to January 2023 Mortgage loans declined by 30-40% compared to the corresponding month of the previous year. The growth of this indicator to 50% in February suggests that the housing market may cool more than previously expected.

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