How Higher Living Costs Reshaped Mortgage Affordability in 2023
Higher Living Costs and Mortgage Affordability: During late 2022 and early 2023, mortgage affordability weakened due to two interrelated pressures. Mortgage rates increased, making new borrowing more expensive. At the same time, energy, food and household costs reduced disposable income. Lenders therefore had to consider both the proposed mortgage payment and the applicant’s remaining monthly budget. […]