Mortgage Rates Hit a 16-Year High of 6.75%. Here's What That Means for the Industry. The impact of the monthly employment report remains to be seen.

It's a tough time to be a prospective homebuyer.

The 30-year fixed interest rate hit a 16-year high of 6.75%, driving down the total mortgage application volume by 14.2% for the week, according to a report from Mortgage Bankers Association released on Wednesday.

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The skyrocketing rates have coincided with one of the deadliest hurricanes on record in the U.S. — another reason for the application decrease. According to MBA economist Joel Kan, applications in Florida fell 31% compared to 14% overall, on a non-seasonally adjusted basis.

Year over year, mortgage applications plunged 37%.

Of course, higher interest rates mean homebuyers need to pay even more to secure a property in an already expensive market. As a result, adjustable-rate mortgages, which offer a lower interest rate, have become more popular, with month-over-month share of activity up more than 3%, from 8.5% to 11.8%.

In August, the number of applications for adjustable-rate mortgages was the highest it's been in 15 years, per research from Zillow.

Related: Is the Real Estate Housing Market Crashing?

The upcoming release of the monthly employment report will likely have an impact on mortgage rates as well, per CNBC, with the outcome largely determined by how investors and the Federal Reserve react to the results.