Also, ask the previous generation what happened to home prices when rates increased from the 6% range in the 60’s to the high teens in the early 80’s.
Any negative correlation of rates and home prices appears to be a short-term phenomenon. This is easy to explain because your payment is higher when rates go up, causing you to be able to spend fewer $ on a house. However, the longer term effect of inflation reducing the purchasing power of a $ appears to overwhelm the short-term effect over longer (5-10 year) time periods. This is a bit harder to grasp but appears to be what has happened historically.
