"payments of mortgages in the amount of NIS 2.56 billion have not been payed 90 days"
Posted on Dec 4, 2018 by Ifi Reporter - Dan Bielski
The Bank of Israel published data on housing loans - mortgages - of banks. The figure hidden between the tables referred to the volume of mortgages whose repayments are in arrears of more than 90 days. NIS 2.56 billion, as of November 26. This is the highest figure since November 2012. 0.76% of the balance of mortgages is in arrears, the highest since May 2015.
In an international comparison, Israel's situation is relatively good. At the same time, this is a worrying change after a continuous decline since 2011.
Alex Zebzynski, chief economist of investment house Best Dash says that the trend reversed in 2017. "I've been following this figure for a while now and when I talk about it I notice people opening their eyes."
In the meantime, the Bank of Israel is not referring to the trend because they do not view this as a significant problem, at least in its current dimensions. The figure followed closely by the Bank's monetary committee is the mortgage interest rate, which was on a moderate upward trend even before the interest rate was raised.
Thus, for example, in the November update it became clear that the average interest rate on CPI-linked mortgages rose to 3.46% on average, compared with 3.35% in October. Short-term interest rates - up to five years - posted the sharpest rise to 3.39 percent, from 3.26 percent in October.
"The mortgage interest rate has risen slightly in recent months, against the background of the rise in government bond yields," the Bank of Israel announced in its announcement on the interest rate hike, and as a result of the recent interest rate hike, government bond yields rose, and now expect the Bank of Israel interest rate to reach around 1% , Compared with 0.5% before the interest rate hike.
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