The number of mortgages taken out in June was 12.5 thousand, 43% higher than last year
Posted on Jul 22, 2021 by Ifi Reporter - Dan Bielski
The Bank of Israel recently announced that in June, the all-time high in mortgages, with a mortgage volume of NIS 11.6 billion, was 60% higher than the average in the last 12 months.
On Thursday, the Bank of Israel published the full data on the mortgage market for June, which illustrate how hot the housing market is. The high volume of mortgages in June was primarily affected by a sharp increase in the number of transactions: the number of mortgages taken out in June was 12.5 thousand, 43% higher than the average figure for the past year, which was 8.7 thousand mortgages per month.
However, the rise in housing prices also led to an increase in the volume of mortgages: the data show that the average mortgage in June peaked at NIS 928,000, 14% higher than the average mortgage in the previous 12 months.
The record data did not miss the various areas: a record was recorded in investment apartments with mortgages amounting to NIS 1.33 billion, which are 11.5% of mortgages, and also in the area of a price-per-tenant program a record was recorded with mortgages of NIS 1.54 billion, 56% higher than the monthly average last year .
The data also show that the rate of mortgages with high leverage (financing of 60% or more of the value of the property), continues to be high. These mortgages accounted for 42.4% of mortgages in June - a figure more or less similar to the data of recent months.
Recall that following the corona crisis, many mortgage holders have sought to freeze mortgage payments. At the height of the crisis, the volume of frozen mortgages reached NIS 96 billion. Since then, most mortgages have been repaid, and in June there was another slight decrease of NIS 400 million in the volume of frozen mortgages, to a level of NIS 27 billion. This is still more than double the amount of pre-Corona crisis mortgages.
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