[arbitrage]

No, likely easier. Think of it this way. Borrowing money costs you more, but makes the lender more money in interest. Lenders now have more of an incentive to loan out money, because they'll actually be earning more (eventually) on it.

[monknomo]

But if pen2l was a marginal borrower before the rate hike, this might have disqualified him (without a bigger down payment anyhow)