The volume of mortgage performance soared in May to a peak of NIS 9.473 billion

The volume of mortgage performance soared in May to a peak of NIS 9.473 billion. This emerges from data published by the Bank of Israel.
In May, there was a 14% increase compared to the amount of mortgages marketed by the banks in April, and an increase of 82% compared to May 2020 - which was affected by the corona closures.
The increase in the amount of mortgages reflects the increase in the marketing of apartments, the prices of apartments and the upward trend in the rates of leverage and risk that buyers take on in the effort to purchase apartments.
The increase in the amount of mortgages reflects the increase in the marketing of apartments, the prices of apartments and the upward trend in the rates of leverage and risk that buyers take on in the effort to purchase apartments.
Another factor pushing for an increase in the volume of credit is a decrease in the real interest rate (the effective interest rate is deducted from the index) that banks charge on mortgages - a figure that mainly affects investors, whose share among homebuyers rose due to tax relief, travel restrictions and declining demand for office buildings.
Data from the Bank of Israel also reveal a change in the composition of loans taken out by borrowers. While the amounts of indexed loans increased by 8.4% from NIS 2.623 billion to NIS 2.843 billion, the amounts of unindexed loans decreased, and the amounts of unindexed loans increased by 16.1% - from NIS 5.670 billion to NIS 6.584 billion.
The portfolio share of linked loans decreased from 32% to 30%. The change is probably a result of easing restrictions on the volume of loans in prime, and means increasing borrowers' exposure to changes in bank interest rates and Bank of Israel interest rate decisions, and a decrease in exposure to rising consumer price indices.