European mortgage markets have performed exceptionally well in recent years, and this solid performance continued in 2007. Rapid house price growth, high demand for housing and increased competition have pushed mortgage markets onwards. But can we expect the boom times to continue and, if they do, which markets will benefit?

Rates have dropped from 2006 highs of about 6.79 percent for a 30-year fixed mortgage to 6.40 percent last week, according to Freddie Mac. That, however, is still higher than this time a year ago, when they were 5.8 percent.