The average mortgage size in Israel in July was NIS 953,000

The Bank of Israel published an interesting figure according to which the average mortgage size in Israel in July was NIS 953,000, which is a continuation of NIS 929,000 in June and NIS 879,000 in May. This is a significant figure that reveals the degree of exposure of households to significant loans as well as the extent to which the average family in Israel is willing to mortgage their future in order to purchase a home.
Another interesting statistic published today by the Supervisor of Banks reveals that in Israel in July, a total of 12,064 mortgages were granted, a low number compared to the number of mortgages in June, which stood at 12,476 and 10,773 in May.
The average mortgage in Israel was taken at a rate of 60% to 75% of the value of the apartment purchased, so from this it can be deduced that the average apartment in Israel was in the order of NIS 1.3 to 1.4 million.
Here it is worth noting that apartment prices are expected to rise this year at a double-digit rate and the Bank of Israel is in fact operating in two opposite trends. On the one hand, it limits the ability to obtain a high financing rate and restricts the possibility of an additional property to obtain a loan that will serve as equity for the purchase of an apartment.
The last two actions taken by the Bank of Israel are working in opposite directions, on the one hand they are supposed to suppress the demand among those who do not have enough cash to buy an apartment and thus reduce the demand for real estate, and on the other hand it places a heavy burden on the banks. Interest rates for contractors.
The contractor donor will increase the burden on real estate buyers by raising prices. So it seems that the Bank of Israel is trying to take over real estate prices when one thing is forgotten there in the central bank and that is: that it may be right to encourage investors or at least not burden them too much. Encourage a developed and competitive rental market.