YOUNGSTOWN, Ohio (WKBN) – Over the past several months, there have been signs that the hot housing market is cooling off.

Higher interest rates, a slight uptick in supply and the frenzy that came with record low-interest rates have stabilized after large increases in mortgage rates.

Now, the Mortgage Bankers Association (MBA) reports that purchase applications fell 12 percent last week.

Experts say homebuyers are put off by higher rates and worsening affordability.

Worries about the economy are also impacting home sales. Record-high inflation is causing many buyers to hit the pause button on buying a house because of financial uncertainty.

According to MBA, the average contract interest rate for a 30-year fixed-rate mortgage decreased last week from 5.53 percent to 5.49 percent but is still much higher than record low rates of below 3 percent in 2020-2021.

Zillow.com is reporting that the number of homes on the market is increasing and there has been some rebalancing with a recent rise in the share of listings with a price cut. More houses are being built, too. While April housing starts were down 0.2 percent from March, it was up 14.6 percent from April 2021.

The Refinance Index decreased 10 percent from the previous week and was 76 percent lower than the same week one year ago, MBA reports.