# Affordable Housing Window Closing in Canada

> Economists warn Canada's affordable housing window is closing as prices fall and interest rates rise.
- Title: Affordable Housing Window Closing in Canada · Financialpost
- Summary: Economists warn Canada's affordable housing window is closing as prices fall and interest rates rise. Canada's housing affordability is declining as home…
- Keywords: canada, housing, royal bank of canada, affordability, mortgage rates, interest rates, home prices, money, business, Affordable, Window, Closing
- Source: Financialpost — https://financialpost.com/news/economy/window-affordable-housing-canada-closing
- Read time: 1 min
- Topics: canada, housing, royal bank of canada, affordability, mortgage rates, interest rates, home prices, money, business
## Housing Affordability Cycle Ending
Home prices have fallen around 20 per cent from pandemic peak levels, improving affordability for buyers.
## RBC Reports Cycle Nearing End
Royal Bank of Canada says the housing affordability improvement cycle is nearing an end for Canadian buyers.
## Small Income Gains Boost Affordability
Rising household incomes improved affordability slightly in the second quarter, but gains were small.
## Bond Yields Signal Higher Costs
Rising bond yields mark a turn for the worse for ownership costs as mortgage rates rise.

> mark a turn for the worse for ownership costs
## Mortgage Rates Could Rise 9%
Five-year fixed mortgage rates could rise from 4.1 per cent toward 5 per cent, reducing buyer capacity by 9%.

> five-year fixed mortgage rates could rise from 4.1 per cent toward 5 per cent
## Energy Prices Add Pressure
High energy prices will raise utility bills and worsen affordability challenges for buyers.
## Key takeaway

Canada's housing affordability is declining as home prices drop but rising mortgage costs threaten to reduce buyer capacity by 9%.