LANSING, Mich. (WLNS) – Housing hit a peak during the pandemic and sellers saw their home prices soar. But now the market is dropping because of high-interest rates.

Patrick Kennedy recently moved into a new home. And it’s a long time coming. He started looking at houses a year ago when the market was red hot.

“Everything that’s nice and that’s attractive to the majority of buyers. You would see them on the market and gone, under contract a day later, under contract two days later,” said Kennedy.

Kennedy’s realtor David Gunther says things have changed since then.

“The interest rates may be pulling buyers back a little bit, it’s also affording buyers that are strong to not compete with the rest of the world,” said Gunther.

Mortgage rates are now 6.49% which is down from 7% from last month but more than double from one year ago.

“There’s not as many buyers, these higher interest rates are having buyers sit on the sidelines saying we’ll wait and see,” said realtor Melanie Hyer.

Hyer worked with would-be buyer Celia Polhemus. She wants a new home but the thought of a high payment has her waiting.

At the current rate, a monthly mortgage payment on a $400,000 loan would cost about $800 more than last year.

“We are just waiting you know; we’re just waiting to see what happens with this market,” said Polhemus.

Kennedy got his loan when interest rates were at a peak, but his plan is to eventually refinance.

But experts forecast mortgage rates could actually climb again in the coming months and then slowly tick down during the second half of the year.