For the bajillionth time… how housing prices react to higher mortgage rates will be largely dependent on how those rising rates correlate with rent inflation. If rent inflation rises with higher interest rates… higher mortgage rates may not have much of an impact on housing prices, or could possibly lead to higher housing prices depending on the circumstances. See the late-70s for a good example of this – rates skyrocketed… so did housing prices. Looking at mortgage rates in a vacuum is meaningless.
