[kstrauser]

He’s not a banker. He’s a real estate agent.

This is largely a zero-sum game: if the bank is taking more money out of the transaction, sellers (and their agents who work for a percentage of the selling price) will be taking less. It’s not like buyers can magically afford to pay the same principal as before plus new higher interest rates.

[pc86]

This assumes that most people spend the absolute most they can afford for their home purchase. The question is going to be how often is that actually the case?

[pragmatic]

More often than not? That's why auto dealerships talk about the monthly payment not the sale price. A majority of Americans are consistently maxed out on all types of debt with Covid resetting that a bit but those savings are rapidly depleting.