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Interest Rates Down — Will Housing Prices Go Up?

The Bank of Israel dropped interest rates by a quarter of a point to 2.5%. Usually as interest rates go down, housing prices go up, but the Bank of Israel hopes that won’t be the case this time.

The central bank is hoping that the recent softening of the housing market and the mortgage limitations that were enacted last year to discourage speculators will mean that cutting the interest rate won’t lead to a surge in home prices like it did in 2008 – 2009. Other experts disagree. We’ll see….

Here’s a full article from Globes explaining the situation.

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