Mortgage rates in the prime conforming market – although down somewhat from their peaks – remain high relative to yields on longer-term Treasury securities, and lending terms have tightened for this segment as well. As house prices have declined, many borrowers now find themselves "under water" on their mortgages – perhaps as many as 15 to 20 percent by some estimates.
Regarding structural reforms, the ECOFIN Council has recently endorsed the Annual Report on Structural Reforms 2005, prepared by the Economic Policy Committee.