5%, nearly two points from january. on a $400,000 loan that s a difference of nearly $370 a month. the surging mortgage rates are on top of record high home prices, increasing by 20% in the past year. the costly combo has prompted families like this to press pause on their search. after landing a home, even going $50,000 above asking price. if we didn t lose out on the pricing we lost sometimes on the terms. reporter: the housing industry is the lowest since 1999. as builders continue to be bogged down by lack of labor, and soaring costs of materials. everything is going up, unbelievable, due to the supply chain problems we have. reporter: for one of the homeowners, experts say consider expanding the surge type of location and home. and if you can tolerate mortgage rate hikes, hang tight.