Sales of previously owned homes fell for the eighth straight month in September as mortgage rates marched higher, further eroding affordability in the housing market.

Contract closings retracted 1.5% from the month before to an annualized pace of 4.71 million, data from the National Association of Realtors showed Thursday. That washigher than the median estimate of 4.65 million from Bloomberg's survey. Salesfell by 23.8% from a year ago on an unadjusted basis.

The waning demand is showing up in prices, with the median price falling month over month for the third time in a row.

“The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%,” NAR Chief Economist Lawrence Yun said in a statement. “Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales.”

High financing costs and elevated home prices have weakened purchasing power for many homebuyers, especially first-timers. Additionally, some economists foresee more pullbacks from sellers as many homeowners have locked in lower interest rates.

“The higher mortgage rates rise, the more existing homeowners will go on strike from selling in the market and lock into lower rates. The tenure length for a homeowner is over 10 years,” wrote First American Chief Economist Mark Fleming.

The average rate on a 30-year fixed mortgage inched up to 6.94% this week, according to Freddie Mac, remaining at the highest level in 20 years.

At 6.6%, the monthly mortgage payment on the median-asking price home was $2,528, up 49% from a year ago when a typical payment was $1,701 with a 2.99% mortgage rate, according to Redfin.

Expensive borrowing costs come as Treasury yields soared to multiyear highs. The central bank is expected to raise interest rates by three-quarters of a point next month after inflation data came in hotter than expected.