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Mortgage Interest Rates Fall to Lowest Level in Decade
ERR News – Homeowners are reaping some rewards from the EU's efforts to staunch the debt crisis as interest rates have dropped to a ten-year low. The Bank of Estonia said the average interest rate on home loans was 3.1 percent in April, due mainly to a drop in the Euribor reference rate at which banks in the Eurozone offer each other term deposits. A month ago, the six-month Euribor reached the 1 percent mark for the first time in nearly two years, and it has continued to drop since then. The decrease is attributed primarily to the European Central Bank's (ECB) decision to flood the market with 1 trillion euros in three-year loans. The ECB has also cut interest rates, which have stayed at a record-low 1 percent since November.
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- Published: May 28 2012
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