Israelis take out billions in mortgages, but apartments are barely selling

In July 2026, Israelis took out mortgages totaling 11.563 billion shekels, an 8% increase compared to the same month last year. However, this growth is attributed to deferred-payment deals from 2023–2024, not current demand. The Mortgage Consultants Association warns of an 'optical illusion' and urges authorities to address the housing crisis.

In July 2026, Israelis took out mortgages totaling 11.563 billion shekels, about 8% more than in July 2025, according to the Bank of Israel. Since the beginning of the year, the volume of mortgages issued has reached 68.7 billion shekels, 13% more than in the same period in 2025. If the pace continues, the annual total could reach about 118 billion shekels, comparable to 2022 levels. However, this growth does not reflect current demand: a significant portion of the mortgages is linked to apartments purchased in 2023–2024 under deferred-payment programs. These sales were already recorded in earlier statistics, but the loans are being processed now. The Mortgage Consultants Association warns of an 'optical illusion' that could lead to complacency while the housing crisis persists. The structure of loans is changing: the share of CPI-linked mortgages has dropped to 9%, while the share of prime-rate loans has risen to 22%. The association calls on authorities to give the housing market the same attention as security issues.