U.S. mortgage rates surged by over a quarter-point this week, as policymakers continue to battle high inflation by slowing the economy.

The rate on the popular 30-year fixed mortgage is at a nearly 14-year high, according to a widely followed survey.

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That means a buyer financing a median-priced home with a 30-year fixed-rate loan is now looking at a monthly payment about $900 per month higher than this time last year, says George Ratiu, senior economist with Realtor.com.

That amounts to an annual increase of over $10,000.

Yet while higher borrowing costs are keeping people on the sidelines, would-be buyers may not be able to count on rates coming back down. Mortgage rates are still below their long-term averages.

30-year fixed-rate mortgages

The average rate on a 30-year fixed mortgage rose to 6.29% this week, up from 6.02% the previous week, mortgage finance giant Freddie Mac reported on Thursday.

A year ago at this time, the 30-year rate was averaging 2.88%.

Rates have risen for five straight weeks, and the housing market is feeling the strain.

Home sales are in free fall and prices in August were down 6% from their June peak, according to a report from Realtor.com.

“While sales prices were still higher than a year ago, the growth moderated into single-digits, a clear sign that the exponential growth of the past several years has slowed,” Ratiu says.

15-year fixed-rate mortgages

The average interest rate on a 15-year fixed mortgage is running 5.44%, up from 5.21% last week, Freddie Mac says.

Last year at this time, the 15-year rate averaged 2.15%.

Interest rates on 15- and 30-year mortgages typically mirror the yield on the 10-year Treasury, which jumped this week to its highest level since 2011, said Sam Khater, Freddie Mac’s chief economist.

Borrowing costs could continue to rise as the Federal Reserve plans more rate increases. The central bank hiked its benchmark interest rate three-quarters of a point this week and said more increases were likely as it attempts to bring down the hottest inflation in decades.

“For housing markets, higher borrowing costs are the very remedy the Fed is prescribing in order to cool demand and lower overheated prices,” Ratiu says.

5-year adjustable-rate mortgage

The average rate on a five-year adjustable-rate mortgage, or ARM, is averaging 4.97%, up from 4.93% last week.