mortgage rates have risen from around 6.5% in October 2022 to nearly 8% today. The glimmer of hope for the housing market: a small September uptick in new listings.

Mortgage rates hit their highest level in more than 20 years this week, pushing homebuyers’ monthly housing payments to all-time highs. A buyer on a $3,000 monthly budget, for instance, can afford a $419,000 home with a 7.7% mortgage rate, roughly the daily average on October 4. That buyer has lost $38,000 in purchasing power since last October, when they could have bought a $457,000 home with a 6.6% rate. And by that time, buyers had already lost a significant amount of purchasing power since the start of the year, as mortgage rates doubled throughout 2022: A buyer on a $3,000 budget could have purchased a $595,000 home with the 3.5% rates common at the start of 2022.

In addition to sky-high mortgage rates, rising home prices are cutting into buyers’ budgets. The typical U.S. home sold for $371,000 during the four weeks ending October 1, up 3% from a year earlier. That’s because there aren’t enough homes for sale. High housing costs are pushing demand down, with mortgage-purchase applications dropping to their lowest level in nearly 30 years. But inventory is falling significantly, too, as homeowners hang onto relatively low rates: The total number of homes for sale is down 14%.

Why mortgage rates are rising–again: “There are several reasons why mortgage rates are still climbing,” said Redfin Economic Research Lead Chen Zhao. “The Fed hinted that another interest-rate hike before the end of the year is likely, the latest job market data came in stronger than expected, and the yield curve is steepening as investors prepare for higher rates for longer.  Turmoil in Congress isn’t helping, either, as the clash among House Republicans stemming from the narrowly missed government shutdown is causing volatility in stock and bond markets. ”

The silver lining for buyers: More homeowners are listing their homes for sale after months of steady decline. New listings rose 3% in September, and so far this fall listings haven’t declined as much from the summer as they typically do. That may be partly because listings didn’t have much more room to fall–but nonetheless, it’s a glimmer of hope for buyers because it means they have a bit more to choose from and could eventually ease price increases.