Existing owners wouldn't really be affected if they plan to live in their house as it's just paper wealth that they can't access until they sell anyways. Those

Existing owners wouldn't really be affected if they plan to live in their house as it's just paper wealth that they can't access until they sell anyways. Those that downsize just after interest rates rise in order to spend the value locked in their house might lose a bit depending on whether any of the money is reinvested in something else after they sell. People who will lose the most are house builders. Their revenue is directly tied to house prices. However, for a rate rise to be sustainable there has to be other good ways to make money out there otherwise rates will likely quickly go down again.