Archives for October, 2008

Interest rate cut.

Interest rate announcement for November:ריבית בנק ישראל לחודש נובמבר 2008 This will bring the prime rate back down to 5%, and the inter-bank rate down to 3.5%.The rate cut was more or less dictated by international monetary policy, and the Bank of Israel is now mostly staying in line. BTW, just because the prime is down, it doesn’t mean that regular mortgage rates are. Most of them are remaining stable, at what I consider a reasonable level. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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israeli mortgage

I’m a genius

With all of the global market meltdowns and crazy days on Ehad Haam, most people have come to the conclusion that economics experts understand very little. There is one amazing exception: yours truly. A year ago, I predicted that the Euro was nearing a maximum dollar exchange rate and that soon the dollar would gain ground. I speculated that if one were to purchase a property with a Euro linked mortgage, that they could magically make money by shorting the Euro via a mortgage. I was right. The markets are upheaved, they’ll go down more and eventually come back in a few years. This can’t be said of Europe. Europe is down and will never recover. Of all the investments you could have made...
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israeli mortgage

Mortgages in the storm

The good news is that business is more or less as usual in the Israeli real estate and financial markets. However, programs are changing. The banks know how to convince mortgage takers who are not our clients to take the programs that are the most advantageous to them. When they don’t succeed at it, they just change their rates to make up for the lost income. The commercial mortgage banks respond to daily supply and demand.  When everyone requests one type of mortgage, it becomes more expensive. The banks’ credit has also become more expensive for them, so this gets passed along to the little guy. In the meantime, the central bank is stuck between a rock and a hard place with interest rates. The...
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