Due to the recent increase in interest rates, mortgage demand has decreased as homebuyers face a more expensive borrowing cost. This is the highest level since 1994 and many prospective buyers are feeling the pinch. As a result, banks and lenders are now less willing to lend money to those who do not have a strong credit history, which is leading to a decrease in overall mortgage demand. Additionally, rising prices in the housing market are pushing the cost of purchasing a home to a more expensive level, which is further creating a challenge for potential buyers. In order to combat this decline, many banks, lenders, and housing-focused government programs have introduced more lenient qualification criteria in order to make mortgage loans more accessible.