The majority of housing markets in Europe slowed sharply or slid backwards during the second half of 2007 in response to inflation-induced interest rate rises, according to the research report European Housing Review 2008 commissioned by RICS. According to the report, the prime cause has been the general rise in mortgage interest rates over the past 18 months. The knock-on effect of European Central Bank interest rate policies and general rises in interest rates have led to the noticeable slowing of Europe's housing markets.
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