(WWLP) – Mortgage rates have reached their highest level since 2008, closing in on six percent. That has a huge effect on people looking to buy a home.

The 30-year fixed-rate mortgage averaged five-point-89-percent last week, up from less than three percent this time last year. That is due to median prices hovering well over $400,000.

Right now, a homeowner’s monthly payment for a median-priced home, with 20 percent down is more than $550 higher than someone who made the same transaction on September 2021. The rise in cost is cooling the market. Applications for housing loans fell last week.