(Newswire.net – May 23, 2013) Jerusalem, Israel – The base interest rate was recently lowered by 0.25% in a rare mid-month decision by Bank of Israel Chairman Stanley Fisher. The move was prompted by the shekel’s recent appreciation causing exporters to reel from the inflated cost of selling their goods oversees.
In an interview with Bloomberg, HSBC analyst Jonathan Katz has advised that the Bank of Israel may lower the base Interest rate another 0.25% at the end of the month to 1.25% to drive home the message that they are not willing to let the shekel appreciate excessively. “There are no concerns regarding inflationary pressures,” Katz said. “The global environment is looking soft, and we’ve had a global loosening cycle. And if they don’t cut, the shekel will react.”
Due in a large part to the recent cut in the base interest rate Mortgage Rates have fallen significantly. “Shekel fixed rates have fallen to as low as 4.6% on a 30 year term for well-qualified borrowers down from 5.1% from before the rate cut” said Tzvi Shapiro, General Manager of First Israel Mortgage (http://www.firstisrael.com). “We have seen a recent influx in demand for Mortgage refinancing due to the drop in rates and anticipate the demand to continue so long as rates remain low” continued Shapiro.
Foreign buyers have also taken advantage of the low Mortgage rates currently available. According to a report by Israel’s Ministry of Finance foreign residents accounted for over 11% of all transactions in Tel Aviv and over 40% of all transactions in certain neighborhoods of Jerusalem such as Bayit Vegan, Rehavia, Romema, and Sanhedria. “Foreign residents are currently securing US Dollar variable rates between 1.8%-2.3%” said Shapiro. “These rates are nearing historic lows and have peaked buyer interest from around the world”
For more information please contact:
First Israel Mortgage
www.firstisrael.com
Chaim Friedman
IL: 054-618-9054
US: 845-694-7148
cfriedman@firstisrael.com
Pubshished By Bill Walsh