This is good news for anyone who invests in Israel real estate stocks. Apartment buyers, as well as those who have bought apartments in the past, will benefit from the sharp drop in interest rates through lower mortgage costs.
"The fall in the basic interest rates," Bruchim said, "will have an immediate effect on mortgages. Mortgages are sophisticated financial transactions. Clients can choose what kind of mortgages they want - whether in foreign currency, shekel mortgages linked to the cost of living, or unlinked shekel mortgages bearing floating interest rates based on the prime rate. Most take a mortgage mix of shekel-linked and prime rate-linked on a 60% to 40% ratio. Some also take a small part of their mortgage linked to the US dollar.
