My VA in 76 was 8%. My next purchase, due to a move, had a 13% note in 1980. I was really up against it at 13% but looked fondly at is later as the rates actually got to close to 18% by 81.
in 81, 25 yr zeros were paying 9.7% (thank you Bob Brinker). Historically rates are still low but the rapid rise is going to catch many in a bind, either because they cannot sell their homes with mtgs at 3% or because for some dumb reason they have adjustable mortgages-doubling interest rates almost halves the leverage ability to buy.
Then again, perhaps these are transitory. IMO, they don’t extend those tax rates, the GOP will be history in the next election.
It may be just as you say. Or it may be that higher interest rates have a secondary result of lowering home prices. I'm of the belief that very low interest rates artificially inflate home prices. If rates are raised, then after a short time home prices might go down and make the house sellable (if the homeowner is willing to sell at a lower price, assuming of course his new home he's buying is also at a low price).