After the mortgage crisis of 2006, in which the United States of America experienced a boom and then a devastating bust that spread across most of the globe, it seemed like it would never bounce back. Then, when the financial meltdown occurred in 2008, it seemed like mortgage rates would be stagnant for even longer, which they were. Yet, now four years later, it finally looks like the mortgage market across the world is finally starting to make a come back and reach the levels they were at when the economy and the market were performing at very high levels. Of course, some areas of the world were hit much harder than others.
There were many factors when considering which countries were affected the most, but-all in all- it hit everyone pretty hard. But, the economy has been making a come back lately and it looks like every country around the world is starting to pick up momentum and start moving in the right direction. One of the best economic indicators is mortgage rates. The following is a list of some areas of the world that have been making steps in the right direction for stock markets:
Average Mortgage Rates in the United States
For the most part, the entire world looks at what is happening in America and then making economic decisions based on that. In many ways, America is the economic measuring stick that dictates what the rest of the world will do in reaction. In the United States, the average mortgage rates are at about 3.72-percent for a fixed rate 30-year mortgage. This is a promising sign, but because the United States is such a large country- the mortgage rates differ from one state to the next. Yet, the overall health of mortgage rates in the U.S. have made the rest of the world feel comfortable with the global economy and their own mortgage rates.
Average Mortgage Rates in Europe
Europe was very hard hit by the financial meltdown of 2008 and has experienced a much tougher time getting their economy back on the right track. The rate of growth in Europe is much slower than the United States’ and the rest of the world for the most part. Mortgage rates have been rising in Europe, which shows a lack of confidence in their economy overall. The rates differ from country to country, but the worst countries have mortgage rates near the 5-percent area, but overall the average is at 3.72-percent, which is right in line with the United States model.
Average Mortgage Rates in Asia
The average rates are unknown is Asia, as the countries tend to not interact with each other in terms of mortgage regulation. Singapore has the lowest at about 1-percent, while China has rates that are at more than 7-percent.
Jack Dawson is a freelance writer and advice columnist on the subjects of real estate, personal finance and the global economy. His work can be read through out his home country of Canada in community newspapers, real estate magazines, finance web sites and news blogs. He spends much of his time writing about Toronto rates, as he lived in Toronto for more than a decade and loves the city.