(Reuters] – Last week’s average U.S. interest rate rose to over 5%, which is the highest since November 2018 and has caused homebuyers to rush to purchase before the costs increase further. The latest Weekly Survey from the Mortgage Bankers Association (MBA), showed Wednesday.

From 4.90% one week prior, the average fixed rate contract rate for a 30-year mortgage rose to 5.13% during week ending April 8. This is more than 1.5 percent higher than the previous week, as the Federal Reserve started to tighten financial terms to lower inflation.

Fed policymakers anticipate an increase in interest rates as soon as possible to lower inflation. This is after raising the benchmark overnight lending rate for the first-time in three years last month.

Investors expect the Fed to raise its federal funds rate from 0.25% to 0.5%, and increase it to 2.5%-2.75% by 2022.

Last week saw a slight increase in mortgage activity due to the increased cost of borrowing. Homebuyers scrambled to secure rates ahead of rising costs.

MBA reported that its Purchase Composite Index (a measure of mortgage applications to purchase a single-family home) increased by 1.4% seasonally, reaching 261.8. The refinance index dropped 4.9%.

On Wednesday, the MBA released its latest economic forecast. Mortgage originations are expected to decline by 35.5.% from last year’s $2.58 Trillion.

However, purchase originations continue to rise and will reach a record high of $1.72 trillion by 2022.