Falling House Prices Affect Housing Affordability

Several factors can affect the price of housing and housing affordability: the national and global economy, the local economy, mortgage interest rates, employment levels, income levels, tax rates, consumer confidence and inflationary pressures etc.

When interest rates rise, at the same time as the economy goes into a downturn, problems can develop for homeowners. They can face both the problem of high mortgage costs and falling house selling prices. This can have a positive and negative effect on housing affordability.

Read the full article on housing affordability here.