WASHINGTON (Reuters] – The latest indicator that rising mortgage rates as well as higher housing prices have dampened demand for housing is April’s drop in contracts to purchase previously-owned homes from the United States.

According to the National Association of Realtors, its Pending Home Sales Index (based on contracts signed) fell by 3.9% last month, to 99.3. This was the sixth consecutive monthly drop and drove contracts to their lowest point since April 2020 when activity had been depressed due to COVID-19 lockdowns.

The Midwest saw a rise in home sales despite declining numbers in the Northeast, West, and South. Reuters polled economists and predicted that contracts would fall by 2.0%. After a couple of months, they become sales. Year-on-year, the April decline in home sales of pending homeowners was 9.1%.

Last week’s data showed that sales of homes previously owned fell to their lowest point in almost two years, in April. This was due to record-breaking house prices and a lack of inventory. Also, new home sales have dropped to a 2-year low.

The NAR reports that rising mortgage rates are causing a rise in the price of a house by over 25% compared to a year earlier. Additionally, the higher home prices have added another 15%.

Data from the mortgage finance agency shows that the average 30-year fixed-rate mortgage rate is 5.25 percent. Freddie Mac (OTC:).

Since March, the Federal Reserve raised its policy rate by 75 basis point. At each of the U.S. central banks’ next policy meetings, which are scheduled for June and July respectively, that rate will be increased by half a percent.