Considering a 30-year mortgage has gone from approximately 3 percent to 7 percent over the past two years, simple math would tell you that home prices would have to come down. But they haven't for a couple reasons, and both are on the supply side.
First, if you have an existing mortgage, you are reluctant to sell because even a lateral move would nearly double your existing payment. Many potential sellers are staying in place and remodeling rather than move.
Secondly, there is an extreme lack of new homes. In the four decades leading up to the global financial crisis, nearly 26 million new homes were built in each decade. In the wake of the 2008 crises, which really came out of the real estate sector, only 5.8 million new homes were built. Sellers will continue to have the upper hand until rates continue to ratchet higher or the job market slows.