[stevenhuang]

This captures my assessment on the matter.

With the housing shortage and unmet demand, we are at the margins whereby the ones buying are well-off.

The question to ask is if the rate of new housing and the rate of capable buyers will diverge.

As long as supply is low enough that the supply of capable buyers keep outbidding each other, housing prices will keep rising or at least plateau.

Higher rates will have an affect on diminishing the rate of capable buyers entering the market, but if supply is still low and the demand for home ownership remains high, I don't foresee anything drastic happening to the housing market.