(WKBN) – The numbers are shaking out for the last two years of an unprecedented housing frenzy and according to the National Association of Realtors, homes were 80% higher in June 2022 than in June 2019.

Escalating mortgage rates fueled an 8.6% decline in pending home sales in May. The West experienced the largest monthly decline.

“Contract signings to buy a home will keep tumbling down as long as mortgage rates keep climbing, as has happened this year to date,” said NAR Chief Economist Lawrence Yun. “There are indications that mortgage rates may be topping or very close to a cyclical high in July. If so, pending contracts should also begin to stabilize.”

The Federal Reserve is set to make another interest rate hike. According to the Associated Press, when the agency ends its Wednesday policy meeting, it is expected to impose a three-quarter-point hike.

It will be the Fed’s fourth rate hike since March.

By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. In turn, consumers and businesses will likely borrow and spend less, cooling the economy and slowing inflation. 

The Associated Press contributed to this report.