On the one hand, higher interest rates should have theoretically had a depressing effect on home prices, with the typical buyer able to afford less in the way of monthly payments. But I’ve heard it suggested that that mechanism was offset by a lack of inventory of homes for sale. With homeowners locked in where they’re at with low-rate mortgages, they’re reluctant to move to a new home with a higher monthly payment... and also much higher property taxes, due to the across-the-board asset inflation of Bidenomics.
The other major factor is that most of the Baby Boomers own their house with no mortgage. Interest rates were so cheap 10-15 years ago that they refinanced under 3% and then paid it off. This is where I am currently.
So, unless they want to downsize or move south to retire there is no reason to sell. There is not a big incentive to sell if a piece of crap condo/starter home is worth almost the same as my 2700 sq ft home.
Which is why about 1/3 of current home sales are being done without a mortgage.