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Is the housing market finally cooling off?

CNBC reports surging interest rates are pushing mortgage demand down more than 40% from a year ago.

CHARLOTTE, N.C. — Is the housing market finally cooling off?

Let's connect the dots. 

For nearly two years, homebuyers have been faced with stiff competition and forced to shell out thousands above the asking price in cash if they want to be competitive. Now things may be changing. 

RELATED: 'People cannot afford to live here' | Charlotte City Council discusses new approach to affordable housing

CNBC reports surging interest rates are pushing mortgage demand down more than 40% from a year ago, and applications to refinance a home loan have been falling steadily for months. 

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So what gives? Simply put, it's more expensive to borrow. 

To tackle runaway inflation, the federal reserve is raising the key interest rate which raises the cost of taking out a loan. 

RELATED: Several affordable housing projects being eyed by Charlotte leaders

Right now the average mortgage comes with about a 5% interest rate, compared to about 3% a year ago. 

The higher interest rate will cost you close to $100,000 more total over a 30-year mortgage. So it should come as no surprise that the housing market is slowly cooling off. 

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Contact Ben Thompson at bthompson@wcnc.com and follow him on FacebookTwitter and Instagram.

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