mattwnz:

 

I am guessing house prices would have to drop to compensate for the rise in the rates. So the ones most affected will likely be those who purchased in 2020-2022 and got mega mortgages. The crazy house price rise was in part fueled by the record low interest rates, and I hope we are not going to find out the hard way, that banks should have been far more conservative with their lending during that time. It seems some banks were only stress testing around the 5-6% mark when rates were at emergency low levels . I have already seen some people who purchased in the last 2 years, dropping their price to about what they paid for it back when they purchased it. Some sellers are getting desperate. 

 

Fully fueled by low interest rates I'd suggest. Prices will ease as rates go up, and that's fine. The unfortunate factor right now is that due to supply inflation, building is more costly and risky which will push buyers to buying not building, based on horror stories of sunset clauses. Be better if building was encouraged, but I cant see that for the near future