How Rising Interest Rates Impact the Mortgage Market: Demand Slowdown, Refinancing Patterns, and Product Mix Changes

Posted by Hugh Grant
12
Sep 10, 2025
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The transmission mechanism between rising interest rates and mortgage market dynamics represents one of the most powerful connections in modern economic systems. In Israel's complex mortgage environment, rate increases create cascading effects that reshape borrower behavior, lender strategies, and overall market activity patterns through multiple channels that extend far beyond simple affordability calculations.

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