Archives for June, 2009

economic news

Impending economic growth and the Prime Rate

Two days ago, the governor of the Bank of Israel decided to leave the interest rates unchanged for July. Was this wise? Will this last. Take a look at these headlines: Elbit to supply aircraft systems…..Shekel-Dollar rate rises….Employment Services sees drop in jobseeker numbers…Bank Hapoalim raises record amount….Israel to be opened to foreign funds….Goldman Sachs raises Teva target price….Barclays Capital raises banking sector rating….Tadir Gan shares jump on GM order….. The casual reader would think that I scraped these headlines off of a three year old Israeli business paper. I actually took them from today’s Globes, a quality newspaper that I highly recommend. What does this mean for you and your mortgage? Everything. We understand that there are business cycles, and plan mortgages accordingly....
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Interest rate set to rise

I saw this today on Globes It looks like the Citi experts have finally picked up on what I’ve been saying. Inflation is up, and despite the negative numbers at the begining of the year, we are on track to have an average inflation year, more or less. Citi sees interest rate hikes. I agree. Every case is different, and you should always consult your qualified Israeli Mortgage Advisor....
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israeli mortgage

Israel–one of the few places in the world with rising real estate prices

As we have been postulating for some time, real estate prices in Israel have risen continuously.The news is that we are one of the few places in the world where this has happened. The official data has been posted on the Global Property Guide, a site dedicated to helping foreigners understand international real estate markets. They gather information from our Central Bureau of Statistics and similar institutions in 50 other countries and compares statistics such as purchase prices and rental rates. You won’t be seeing any thing like these signs any time soon in Israel. As the situation in the world got worse, more and more people decided to buy in Israel. For years I have been writing about the lack of sufficient new...
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israeli mortgage

The golden days are ending soon

The days of incredible mortgages are ending very quickly. Most mortgages are not tied to the official interest rate, but to the banks’ internal cost of raising capital. Long term interest rates are the first quiet indicator of what is happening in the market. Right now, non-indexed mortgages are getting expensive rapidly. Watch the banks encourage people into inflation-indexed programs. If you were thinking of refinancing, it must be done now. Soon it will be a money-losing prospect for most people. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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