The interest rate rose last month for all periods of mortgages.
After remaining mostly unchanged in February, the mortgage interest rate has resumed its climb in March. The average interest rate on index-linked mortgages reached 3.93%, compared with 3.85% in February. This consists of the average interest rate on mortgages closed with the banks by the end of February, with the incidence of the mortgage being until March 15.
The average interest rate on index-linked mortgages reflects an effective interest rate (including the increase in the Consumer Price Index (CPI)) of 6%, 2% higher than it was 18 months ago. The reasons for the rise are expectations of a rise in the CPI, expectations of an increase in the interest rate, and lack of competition between the banks.
The interest rate on 20-25-year mortgages rose from 4.19% in February to 4.23% in March. The interest rate on 15-20-year mortgages was up from 4.14% in February to 4.19% in March. The interest rate rose for all periods of mortgages.
Published by Globes [online], Israel Business News - www.globes-online.com - on March 19, 2017
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