As markets continue to be swayed by fears of prolonged inflation and interest rate hikes, the average interest rate on the 30-year fixed-rate mortgage reportedly topped 7% on Thursday.

Interest rates jumped above 7% last October, hitting their highest level in over 20 years. after to a CNBC report.

However, they fell into the following months as inflation seemed be chilling. By mid-January, interest rates were hovering near 6%, leading to a spike in buyers signing deals on existing homes, the report said.

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“Interest rates keep moving when economic data suggests they do, and the data hasn’t been kind. That’s scary considering this week’s data is insignificant compared to several upcoming reports,” he said Matthew Grahammanager at Mortgage News Daily.

Increasing returns: The 10-year Treasury yield broke above 4% this week for the first time since November, led by fears of continued rate hikes and persistent inflation.

The iShares 20 Plus Year Treasury Bond ETF TLT closed down 0.89% on Thursday during the Vanguard Total Bond Market Index Fund ETF BND 0.21% lost.

Mortgage applications from homebuyers have declined over the past month, hitting a 28-year low last week, the CNBC report said Association of Mortgage Banks. That’s because the monthly payment is about 50% higher today than it was a year ago when rates were in the 4% range.

george ratiou, chief economist at Immobilienmakler.com said consumers have taken on a record amount of debt. “As interest rates rise, financial strains are expected to increase, which will complicate consumer choices in the coming months,” he said, according to the CNBC report.

Continue reading: El-Erian says the Fed risks throwing the economy into recession every time it falls behind