As interest rates have spiralled ever higher since March — and are certain to be hiked once again on September 13 — would-be homebuyers’ purchasing power is steadily decreasing.
In fact, the average borrower can expect to see their affordability whittled by more than 10% in the near future, according to lending experts.
Rob McLister, mortgage analyst at Mortgagelogic.news, recently wrote in a note that should the central bank pass on a 50-basis-point increase in their next rate announcement, he anticipates a 12% drop for a household earning $100,000.
“Rocketing rates have taken a voracious bite out of mortgagors’ buying power. And it’ll likely get worse before it gets better,” he wrote, pointing to a recent aggregate affordability measure from RBC that pins levels at their worst-ever nationwide.
“This nonstop constriction of mortgage amounts is all too real for the…