tag:blogger.com,1999:blog-8817171247555815363.post1732345236568829320..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 11/11/2012: Property prices bust 2008-2012TrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8817171247555815363.post-59507781244280565312012-11-13T11:02:21.870+00:002012-11-13T11:02:21.870+00:00Israel is one of the outliers according to exhibit...Israel is one of the outliers according to exhibit 3. <br /><br />The recent cut in interest rates (Bank of Israel) surprised many people. This has been combined with some new directives on mortgage lending which are mentioned briefly in page 7 of the report. <br /><br />Some more detail can be found in a recent businessweek article below:<br /><br />"The directives limit mortgages to 70 percent of the value of the home, with the exception of first-time buyers, who will be permitted to borrow as much as 75 percent. Mortgages on houses purchased as an investment will be limited to 50 percent of the value." <br /><br />The article suggests that expectations from consumer and business surveys play an important role in the monetary policy decisions.<br /><br />“Indicators which became available this month continue to strengthen the assessment that there has been some moderation in the growth rate to about 3 percent,” the central bank said. “Expectations seen in consumer surveys and the Business Tendency Survey are pessimistic and indicate predictions of further moderation in activity.”Anonymousnoreply@blogger.com