The index is at its lowest level since June 2003.
Mishkan Hapoalim Mortgage Bank Homebuyers Index fell a further 1.1% in May 2011, to reach its lowest level since June 2003. A decline in the index indicates worsening conditions for homebuyers.
The main reasons for the drop in the index were higher interest rates and home prices.
The Central Bureau of Statistics reports that home prices rose a further 1.5% in May, and rose by 15.3% in nominal figures and 10.3% in real figures over the preceding 12 months. The Bank of Israel reports that the average mortgage interest rate on fixed and CPI-linked 17 20-year loans rose a further 0.16% in May to 3.55%.
The drop in the unemployment rate to 5.8% and the rise in the average national salary partly offset these two factors in the Mishkan Index.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011