Jose Araque works hard seven days a week. He owns Araque Landscaping in Middletown. He loves his job.

"I'm happy with that, but I'm gonna try to get a ticket. You never know," said Araque.

He’s hoping he has the winning Mega Millions ticket. Millions of Americans around the country are hoping they have a winning ticket too, especially after news that the U.S. economy shrank 0.9% from April to June for the second straight quarter.

The slowing economy is affecting everything from buying groceries, to buying a car to even buying a home.

"As feds started raising rates over the last six months or so, interest rates on buying homes has gone up, it's gone up. Right now it’s at 5.5, roughly 5.5% where a few years ago, in the last couple of years, it was under 3, so rates have almost doubled in some cases," said Ron Garafalo, a sales manager and realtor with John J. Lease Realtors in Middletown.

He keeps a close eye on rising interest rates. On Wednesday, the Federal Reserve raised interest rates by 0.75% in an effort to curb inflation. Garafalo said that rising interest rate could mean higher monthly mortgage payments.

"So if somebody was borrowing, say $400,000 for 30 years at a 3% interest rate which is where they were, they were actually a little bit lower," said Garafolo. "At 3%, their payment would be $1,686 and now if you want to look at that same loan at a 5.5% interest rate, their payment would go to $2,271."

According to the Mortgage Bankers Association, mortgage applications decreased 1.8% from the week before and 83% from this week last year. Garafalo said homebuyers are starting to take notice.

"With rates going up, the buyer getting a loan for a certain amount of money, that loan would be more expensive today than it was six months ago. However, there are still more buyers than there are sellers," said Garafalo.

He said many homebuyers he works with are having to change what they're looking for.

"Maybe different type of home, because homes have continued to go up in price and interest rates are going up, they can buy less of a home for that same payment that they were making," said Garafalo.

He gave some tips for buyers still interested in buying a home right now.

"First thing I'd say is that I would strongly suggest that you do call a realtor. A realtor is gonna look out for your best interest," said Garafalo.

He also said you should talk to a lender to make sure you’re looking in the right price range for you, and lastly, be clear about your numbers — make sure you know what your monthly payments will be if you do close on that new home.

While Garafalo is focused on those rising rates, Araque is focused on that $1 billion jackpot.

"I got the winning number here," said Araque. "Sorry for everybody else."