After years of white hot sales and lengthy waitlists, builders are now faced with a shift as mortgage rates continue to rise and buyers aren’t flooding in. According to an NAHB anaylsis, 824,000 single-family U.S. homes were under construction in June, which is more than any time since October 2006.

An abrupt halt to the pandemic housing boom has left builders that started construction months ago scrambling to adapt. The US supply of new homes relative to sales in June was the highest since the midst of the last crash in 2010. And by early July, buyer traffic to homebuilder websites and sales offices had plunged to the lowest level for the month since 2012, according to a survey of builder sentiment from the National Association of Home Builders.

The new-home pile up underscores a broader shift that’s wreaking havoc in the market. A national housing shortage contributed to years of bidding wars and desperation among buyers who bid up prices to record levels for fear of missing out. But this year’s surge in borrowing costs has now pushed affordability to a breaking point and eased some of the scarcity.