The affect of rate hikes on Israel's mortgage market

Since the low, short term interest rates have risen from 0.5% to 1% in a 4 month period. On average, a mortgage in Israeli is in the size of 600,000 NIS, which amounts to 6,000 NIS a year and about 500 NIS a month.
SINCE 40% OF THE MARKET IS ADJUSTABLE RATE EVERY RATE HIKE OF 1% AMOUNTS TO A 600 NIS RISE IN INTEREST EXPENSES WHICH IS 7.5% OF ISRAEL AVERAGE MONTHLY SALARY.

Stanley Fisher is still in a comfortable position since inflation expectations are 2.7%, but the Israel shekel remains strong. Once the Forex markets will wake up he will be caught between a rock and a hard place with a weak currency forcing him to raise rates and a weak economy with a crashing housing market.For in depth analysis of Israel's housing bubble ( see:Short of the year 2010- Israeli banks, currency and government bonds )
The affect of rate hike on Israel's mortgage market