(Reuters) – Last week, the average U.S. mortgage interest rate rose to its highest ever level since June 2009. As rising prices began to affect the market for mortgages, data from the Mortgage Bankers’ Association (MBA), showed Wednesday.

According to the MBA survey, the average fixed rate contract rate for a 30-year mortgage rose from 5.20% one week ago to 5.37% during the week ending April 22, 2015 (weekend ended April 22).

The index has increased 220 basis points in 12 months, most of it since the beginning of the year. This is because financial markets have responded to U.S. Federal Reserve plans to increase interest rates faster to fight high inflation.

At its next policy meeting, the central bank will likely raise its benchmark rate by 50 basis point and decide to reduce its $8.5 trillion portfolio of U.S. Treasuries. This is a stock of assets that helped to keep consumer borrowing costs low, in particular for mortgages, during the COVID-19 pandemic.

Due to a near-record low housing supply, the market for housing continues to show mixed signals.

According to the Conference Board’s Tuesday consumer confidence index, more people are planning on buying a house, even with record prices and skyrocketing mortgage rates. According to the National Association of Realtors, last week’s report showed that the median house price rose 15% over a year ago, reaching an all-time record $375,300.

However, last week’s mortgage applications dropped for the second straight week. MBA reported that its Purchase Composite Index, which measures all mortgage loans for the purchase of single-family homes, dropped 7.6%, seasonally adjusted, and the refinance index dropped 9%.