> Just checked, and except Alaska all states saw at least a 20% increase in the last 2 years (and quite a few had 30-50% increases) Which goes to my last point

> Just checked, and except Alaska all states saw at least a 20% increase in the last 2 years (and quite a few had 30-50% increases) Which goes to my last point, the population of people wanting to purchase a home has grown. > So if mortgage rates go higher that should mostly likely drop, no? I don't know why so many people try to boil down markets to "A therefore B" statements. These are complex systems with 100's of different inputs plus 10's of millions of individual actors. Interest rates don't affect just the buy side, but also the supply side. If supply drops in proportion to demand, then the marginal house will still maintain these high price levels. We could also see a pullback in less desirable areas and a leveling off or even a continued increase in prices in desirable areas. There are many different scenarios that can play out, and yes, prices could pull back...but by how much? My best guess is that prices level off or have a small pull back.