This week, mortgage rates hit their highest level in over 14 years, dealing further damage to the increasingly cooling housing market.
According to a weekly poll issued Thursday by Freddie Mac, the average rate on a 30-year fixed mortgage increased to 5.89%, surpassing a previous peak from June.
The central bank looks to be on track to raise rates by 0.75 percentage point this month.
The Federal Reserve is paying close attention to the housing market since growing expenses are a big contributor to this year's sky-high inflation.
"We're all focused on the housing industry," Fed Vice Chairwoman Lael Brainard said Wednesday at a banking conference.
The epidemic era's record-low interest rates ushered in a mortgage bonanza, with numerous firms rapidly expanding by refinancing homeowners into lower-rate loans.