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Welcome, once again, to the weekly update from First Israel Mortgages.
This is a big week in our world, and potentially for some of our clients too.
The Bank of Israel will announce on Monday (July 10, 2023) afternoon, whether they will increase interest rates.
Were they to do so by a possible 0.25% this would bring the interest rates in Israel to their highest level since 2006.
We are posting this on Sunday and there is still no consensus which way the Bank of Israel will go.
For sure, we know that we at First Israel Mortgages are always here for our clients and can promise that we will be available to you all, however the Bank of Israel decide to proceed.
For more on the potential interest rate change, or lack of, see the final article below in the Israel Real Estate News section.
Below is our weekly update, if you want to jump to a section, click here:
Mortgage market brief:
Mortgage Rates Unchanged: 30 year fixed; 4.85-5.25%, 10 year fixed; 4.75 – 5.20%
Interest Rates Higher: 5 year NIS: 3.90%,
3 month US$: 5.30%
FOREX/NIS: USD; 3.70, EUR; 4.06, GBP; 4.75
Prime Mortgage Rate: 6.25%
Israel Real Estate News
Israelis invested $2.3b in real estate abroad in 2022 (Globes)
Apartments sold and rented (Globes)
Israel approves construction of new town in Galilee region (Jerusalem Post)
Bank of Israel seen pausing next week, unclear if rate hike cycle over: Reuters poll (Reuters)
5 top mortgage tips
– Having an appraisal prior to signing a contract is highly recommended as it may effect mortgage eligibility.
– While a client’s tax return may indicate little or no income, that does not automatically disqualify them for a mortgage.
– A mortgage approval can be applied to almost any purchase, and can therefore be obtained prior to choosing a specific property.
– Mortgage approvals can take as little as a few days, while funding the mortgage requires a minimum of 60 days.
– Prepayment penalties may be applicable to Israeli mortgages. There are methods of minimizing the impact.
Related: Refinancing (Part 5 of an ongoing Israel Mortgage Primer series).
