Mortgage Rates Biggest Decrease Seen In Sweden

The mortgage lending data, available for Q1, shows that mortgage rates dropped in Sweden by 295 bps. In Ireland they dropped by 177 bps. In Portugal and UK the loan rates dropped 159 and 150 bps respectively.

The EU mortgage lending report says that without a doubt the current decrease in both the mortgage rates and housing prices will determine a new "scenario" that increases the affordability of houses for European consumers. It also hints that today's mortgage rates in EU states will hardly come down any further because the houses are much more affordable today than they used to be years ago.

"Given that there is no room for further relevant decreases on interest rates, as long as house prices continue to decrease housing affordability will improve and probably will reach, at the end of the year 2009, similar levels to those recorded in 2005 when the housing market still performed buoyantly," reads part of the report.

However, the perception of house price stability in the medium term by potential home buyers and the improvement of consumer employment are two factors that are necessary for the complete housing market recovery.

In the past 3-4 years before the last global recession the housing market in Europe expressed boom years. Not only relatively the lower mortgage rates, good economy and improved outlook, but also inflow of millions of immigrants to Europe from Middle East and Africa increased the demand for for new houses and apartments throughout the European continent.

Today's mortgage rates in U.S. are the following according to the numbers provided by Wells Fargo. The 30-year fixed mortgage is at 5 percent, while the fixed FHA for the same is 5.5 percent. The 15-year fixed rate is 4.5 percent and the 5-year fixed is at 3.87 percent. The 5-year ARM FHA is at 3.75.

Wells Fargo's today's mortgage rates were last updated at 11:16 AM Eastern Time.

Written by Armen Hareyan