It will be great if you are looking to buy. One mans misfortune is another man's fortune. I'd wait and see how this shakes out for a while. If things don't improve during the summer, there will be desperate sellers in the fall.
That rising interest is scary if you are financing. Keep an eye on that. I remember in the 80's where it hit 19%. Increasing bankruptcies will drive that up fast.
My better half has been itching to buy a home for about 8 years now, I try to tell him that it's still cheaper to rent, even here in the Southwest.