The Bank of Israel will raise its base rate by 0.25%- ריבית בנק ישראל לחודש יולי 2008
There are no surprises here. The markets and foreign currency exchanges have already adjusted for this. If we weren't experiencing our foreign currency challenges right now, the hike would have been higher.
If things remain similar, there will probably be an additional hike next month. The rate is still quite reasonable. The LIBOR right now is around 2.8 and the US rate is 2.0. We can't have such high differences for long.
What you aren't hearing about is that the banks are starting to offer less attractive mortgages. It looks like the competition between the banks has run its course for now, and the crazy programs are a thing of history. Whatever you heard that your friend got three months ago is completely irrelevant today.
Every case is different, and you should always consult your qualified Israeli Mortgage Expert.
