Mishkan Hapoalim Mortgage Bank Homebuyers Index fell a further 0.6 points in June 2011 to 125.8 points, its lowest level since June 2003.
Bank Hapoalim said that the condition of homebuyers continued to worsen as home prices and mortgage interest rates continued to rise. The Central Bureau of Statistics earlier reported that home prices rose 0.7% in June.
Home prices rose 13.7% in nominal terms in the preceding 12 months and by 9.7% in real terms. Since the low point in mid-2007, home prices have risen 63% in nominal terms and 41% in real terms.
The Mishkan Index has fallen 26.4% from its high point of 171 points in mid-2008.
Bank Hapoalim says, "The rise in home prices and mortgage interest rates worsened the condition of homebuyers in June. The average interest rate on 17-20 year fixed-interest, CPI-linked home loans rose by a further 0.11 percentage points in June to 3.66%. The drop in the unemployment rate to a low point of 5.7%, and the rise in the average national salary partly offset the fall in the in the index."
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2011
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