The red-hot housing market may be cooling off but interest rates are soaring.

In fact, they're now at their highest mark since 2008, which could sideline many potential buyers.

Real estate agent Robin DiGirolamo says if someone is on the market to buy a sell a home, they shouldn't stay on the sidelines.

"With interest rates at 6%, it's relative to what? The millennials are now facing 6% When I bought a home it was 14%," says DiGirolamo.

She says anyone who is deciding to buy or sell a home should always consider interest rates, but that it's all about perspective. She adds that the benefits of selling or buying right now should still be considered as well.

"Rents are at the highest they've ever been, so we always say when you buy your home, you're paying your own rent, you pay yourself, you're the landlord. When you rent to a landlord, you're paying their mortgage," DiGirolamo says.

For others like Angela Favale who is in the process of buying her first home, her decision to buy in this climate was a simple one.

"It was just time," Favale says, but admits the decision to make this move was not an easy one. She and her husband waited for years she says, but then they just have to jump in.

"Even after they accepted the offer, it was one of those nerve wrecking [days]. One day you're excited and happy, the next day you're nervous," Favale says.

While Favale is ultimately happy with her decision, the numbers don't lie.

This week, applications for mortgages were down nearly 30% from last year at this time.

For those looking for options on Long Island, there are less than 7,000 homes for sale right now after a busy summer of buying.

So DiGirolamo says to potential buyers to be prepared.

"You need to have a preapproval ready. Willing to go, you need to know what you're comfortable buying and this way when something hits the market, you have almost right of first refusal," DiGirolamo says.

Another number that stands out is that applications to refinance mortgages are 83% lower than they were this time last year, which means a large number of people are definitely in a holding pattern.