Mishkan Index shows homebuyers in worst position since 2003

Bank Hapoalim: The rise in home prices and the mortgage interest rate hikes
means homebuyers' conditions deteriorated further in February.

The average interest rate on 17-20 year housing loans (fixed-interest, CPI-linked loans) rose by 0.02 percentage points in February to 3.10% from 3javascript:void(0).08%. The average national wage barely changed. However, the unemployment rate fell to 6.1% in trend figures, which partly offset the drop in the index.

In mid-March, the Central Bureau of Statistics reported a 0.9% rise in home prices in February, and a 16.3% rise over the previous 12 months. Home prices have risen 60% since the low point in mid-2007.

The Mishkan Index examines the condition of homebuyers on the basis of four variables: home prices, the unemployment rate, mortgage interest rates, and the average national salary