An estimated 18 million potential home buyers who would have qualified for a mortgage in January have been essentially shut out of the market, no longer eligible for that loan.

This is the effect of soaring mortgage rates which, on Thursday, reached their highest level in 14 years. This is after the biggest one-week jump in 35 years.

Those who can still afford to buy a home right now can expect to pay 52% more on a monthly mortgage than they would have six months ago.

“We’ll see house price growth stabilize here, and we’ll see price declines in some of the fastest growing markets in the country, especially and in my mind it’s a correction when property prices real estate are starting to fall,” said Mark Zandi, chief economist at Moody’s Analytics.

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Mortgage applications are down more than 15% from 2021, down 5% in May alone. This encourages 1 in 5 sellers to lower their price.

Refinances are down more than 70%, according to the Mortgage Bankers Association.

These numbers are likely to get worse with further rate hikes from the Federal Reserve, a virtual certainty. Following a brutal inflation report last week, the Fed raised a key rate by 75 basis points. This is the Fed’s largest increase in 28 years. More great hikes are expected.

The effect is also felt in those of real estate. On Tuesday, online property broker Redfin, under pressure from a cooling real estate market, said it was laying off 8% of its workers.

“The housing market is down right now. It’s cyclical and it just doesn’t support the number of employees we had before,” said Daryl Fairweather, chief economist for Redfin.

There remains more demand than supply for homes, so it’s too early to call this a buyer’s market. But there are signs of a nationwide cooling.

CBS News and Associated Press contributed to this report.

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