The numbers depend on who you are and from which perspective you are answering the question. If you are a homeowner and thinking of selling, understand that there aren't many buyers out there right now due to the higher interest rates. What people used to qualify for has decreased due to the increase in rates. Because of this, properties are sitting longer on the market which is giving rise to buyers being able to negotiate. Should interest rates continue to rise, you can expect a further reduction in buyer demand. I don't want this news to scare you though. Current contract activity is only slightly lower than 2018 and 2019. Back then, the market was considered a modest sellers' market. The difference between now and then is that the number of houses on the market is 40% less now than back then. Given the higher interest rates, buyers are motivated to come to closing with more cash.
Since 2020, buyers have had to write extremely competitive offers to even be in the running for a home. In today's market, buyers are now able to ask for closing costs assistance, keep financing and appraisal contingencies in place, and even ask for seller repairs during the home inspection. If you are someone who is considering buying a home but unsure what to do, remember that the pool of buyers right now is smaller, giving you the upper hand. Use this leverage when negotiating on the right home for you.
For buyers with interest rate apprehension, consider a scenario where you buy a house today with a 7% interest rate and this time next year rates have increased to 8% or 9%. In this scenario, you are locked in at 7%. If, however, rates were to decrease by this time next year, you can refinance to what they are then. Renting is 100% interest, so don't be afraid to invest in real estate.
Understand that most homeowners right now probably have a sub 4% interest rate requiring them to have a strong and compelling reason to sell and give up that rate to turn around and buy something with today's rate at 7%+. Why does this matter to you as a buyer? This is leading to a shortage of inventory. Yes, the interest rates have created more of a buyer's market, but due to supply being low, this has kept a modest upward pressure on home prices.