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Welcome to the weekly update from First Israel mortgages, for the week that starts in Israel on Sunday May 21, 2023.
There are some significant days coming up this week, both economically and religiously.
On Monday, the Bank of Israel is expected to announce another increase in the interest rates.
Most economic reports suggest it will be a 0.25% increase, but pundits and analysts are not ruling out a half a percentage increase as well.
For more on the interest rate hike, see the Reuters article in the Israel Real Estate News section below.
On Thursday evening and Friday, Israel and the Jewish world will celebrate the festival of Shavuot.
Below is our weekly update, if you want to jump to a section, click here:
Here is your latest mortgage news…
Mortgage market brief:
Mortgage Rates Unchanged: 30 year fixed ⬌; 4.75-5.25%, 10 year fixed ⬌; 4.90 – 5.40%
Interest Rates higher: 5 year NIS: 3.86%, 3 month US$: 5.16%
FOREX/NIS: USD; 3.65, EUR; 3.95, GBP; 4.54
Prime Mortgage Rate: 6.00%
Israel Real Estate News
Rapid rise in apartment rents fuels inflation in Israel (Globes)
Housing sales in Israel hit 20 year low (Globes)
Apartments Sold & Rented (Globes)
Bank of Israel to raise rates 25 basis points next week, may be last in cycle: Reuters poll
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 from 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.
Further reading: Refinancing (Part 5 of an ongoing Israel Mortgage Primer series).
