Are you thinking about buying a new home in 2023 but worried about rising affordability and mortgage rates? You're not alone. This is a common concern for many new home buyers, especially as the real estate market continues to change and evolve.

Mortgage rates have been on the rise due to the economic recovery, the increasing inflation and the expectation of the central bank to raise its overnight rate. The Bank of Canada sets the overnight rate, which is the interest rate at which banks can borrow money from each other. This rate affects the prime rate, which is the rate that banks use to set the interest rate on mortgages and other loans.

Currently, the Bank of Canada's overnight rate is rising, which means that mortgage rates are also increasing. This can make it harder for new home buyers to find an affordable mortgage. However, it's important to keep in mind that these rates are subject to change and may go down in the future.

To help make your new home purchase still affordable, there are a few things you can do:

1. Get pre-approved for a mortgage: This will give you a better idea of how much you can afford to spend on a new home and will also make you a more attractive buyer to sellers.
   
2. Look for homes that are within your budget: Even if you're pre-approved for a higher amount, it's important to only look at homes that you can afford to pay for each month.
   
3. Consider a shorter amortization period: This will increase your monthly payments, but it will also mean that you'll be paying less interest over the life of the loan.
   
4. Make a larger down payment: The larger the down payment, the lower the mortgage amount, which can help make your monthly payments more affordable.
   
5. Shop around for the best mortgage rates: Different lenders may offer different rates, so it's important to compare rates from multiple lenders to find the best deal.
   

Buying a new home can be an exciting, yet overwhelming experience. However, by being aware of the current market conditions and taking steps to make your new home purchase still affordable, you can ensure that you find a home that you love and that you can afford.