[finlake]

I disagree. Until now there might have been 30% buyers with cash, but with rising interest rates that will stop being the case if house prices stay up.

People with large sums of spare money always look for ways to park their money. Interest based products (term deposits, bonds etc.) will now become more attractive, diverting some cash flows away from housing.

[smabie]

Alternatively with interest rates higher, buyers might think they can't get a higher return than the interest rate on the mortgage, thus lowering the opportunity cost of paying all in cash.

[Ozzie_osman]

The interest on most interest based products will not rise as fast as inflation and so I'm not sure they will be "more attractive" (at least compared to real assets).