The condition of homebuyers is steadily worsening, says the Mishkan Hapoalim Mortgage Bank Homebuyers Index. The Mishkan Index fell a further 0.9% to 130.9 in February 2010, its lowest level since 2003, continuing the trend of the past several months.
The Mishkan Index has fallen to its lowest point since the recession of 2003, caused by the bursting of the high-tech bubble,the attacks of September 11, 2001, and the second intifada.
"The rise in home prices and the mortgage interest rate hikes, the condition of homebuyers deteriorated further in February," says Bank Hapoalim. "The average interest rate on 17-20 year housing loans (fixed-interest, CPI-linked loans) rose by 0.02 percentage points in February to 3.10% from 3.08%. The average national wage barely changed. However, the unemployment rate fell to 6.1% in trend figures, which partly offset the drop in the index."
In mid-March, the Central Bureau of Statistics reported a 0.9% rise in home prices in February, and a 16.3% rise over the previous 12 months. Home prices have risen 60% since the low point in mid-2007.
The Mishkan Index examines the condition of homebuyers on the basis of four variables: home prices, the unemployment rate, mortgage interest rates, and the average national salary.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2011
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