The Impact of Mortgage Interest Rates on The Housing Affordability of The Population

The study investigates how mortgage interest rates control housing affordability throughout both developed and developing countries throughout the world. The research uses existing theoretical frameworks together with published empirical studies to investigate how mortgage lending rate changes impact household buying power and residential real estate market demand and overall socioeconomic results. The article demonstrates that even small interest rate increases will lead to a significant decline in formal mortgage access for households which will result in greater housing inequality.