market rates

The forecast about the  ECB rate is of a maintenance on  1.50% level  in the coming months, to ease the burden on public finances of countries in financial crisis and despite the presence  of increases in the rate of inflation (2.8%  in Italy these days compared with previously 2.7% ).
That  has  an impact  on the Euribor rates too, the short-term rates on which are indexed variable rate mortgages and many bonds. The 3-month Euribor, the most widely used, is  stable among 1.615% on July 26 2011 and  1.54% on August 31; in  September 2010 was 0.88 % and in April 2011  was 1.385%.
The  IRS, the rate at which they are established on long-term fixed mortgage rates, has an opposite trend. It is  parameterised on the rate of the German Government "Bund" , and  when  financial turmoil  the performance of this financial instrument  goes down because of purchases that flow over it as a safe haven : the 20 years IRS  fell from 3.96% in April to 3.26% in late August, and 10 years IRS from 3.59% in April 2011 to 2.85 % today.
The impact on mortgage repayments will depend on the spread  policies of the banks: the spread is the percentage that is added to the Euribor rate for variable rate mortgages, and IRS for those fixed rate, in order to arrive at the final installment paid by the consumer.
If the bank's spread policies  don't change, fixed rate mortgage will  be lower than the past.