Business is booming.

Mortgage rates shoot up to highest level since Great Recession

The 15-year rate climbed 18 basis points week over week to a 5.16% average. A year ago at this time, the 15-year fixed-rate mortgage was 2.19%. The five-year Treasury-indexed hybrid adjustable-rate mortgage increased from 4.51% to 4.64%.

Andy Walden, vice president of enterprise research at Black Knight, pointed out the implications of the rate increases for both affordability and (what’s left of) refinance incentive.

“With 30-year rates at 5.89%, home affordability levels have fallen to a new 35-year low,” Walden said. “Given the large role affordability challenges appear to be playing in shifting housing market dynamics, the recent pullback in home prices is likely to continue.”

Read next: Housing sentiment fluctuates as interest rates rise while prices fall

Khater disagrees, citing recent studies that show a bright side to the higher-rate environment.

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