Aug 24, 2022

canceling mortgage interest rates

Actualic is reporting that in light of the current increase in cost of living, with the Bank of Israel raising the interest rates again in an attempt to somewhat curb inflation, MK Moshe Gafni (UTJ) is working on a plan that would exempt young couple from paying the increased interest on mortgages.

According to Gafni, young couples wont be able to take mortgages now to buy their first apartment, because with the increased rates they wont be able to make the payments. Gafni would help them by keeping the interest rate on such mortgages at the lower rate from prior to the increase.

Gafni says that he is going to make this demand absolute in future coalition negotiations - if they work to join the next government led by Netanyahu (or anyone else), this will be a requirement for the ruling party to agree to.

If Gafni is already going to cancel the interest rates increases on mortgages, he should do it for everybody, not just young couples. Everybody is struggling with inflation, not just young couples.




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3 comments:

  1. Yeah, because government interfering never goes bad.

    (Newsflash: It always does.)

    Where is it written that people have a God-given right to buy a house?

    ReplyDelete
  2. His proposal undermines what the rate increase is supposed to accomplish. The whole point of increased rates is to decrease demand for goods that one would borrow to purchase - which then makes the price for such goods go down. By not allowing rates for housing-related interest to rise, this plan would keep housing prices high - is that what he wants?

    Ignorance of basic economic theory seems to be a political necessity if you're a candidate for a Chareidi party...

    ReplyDelete
    Replies
    1. Or, sadly, any other one, worldwide.

      Delete

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