[fatnoah]

My personal opinion, based on what happened in 2008 in my area, is that the exact impact will be local. I think in some traditionally desirable places, prices will level out or only decrease slightly as interest rates rise. Lower inventory will help keep these prices up as increased competition keeps prices inflated despite higher interest rates.

In other places, I think prices will fall as rates rise, since overall affordability will go down, but there won't be as much buyer competition to prop prices up.

At some point, the dam will break and people who've been sitting on the sidelines and accumulating large down payments will start bidding prices up again, causing more sellers to list, which in turn will get more buyers involved.