Why are home prices going up again while interest rates are more than double what they were just a year ago? Home prices are not directly tied to mortgage interest rates like some people believe. Not only are home prices affected by a lack of inventory they are also greatly affected by the number of cash buyers in a market.
Interest rates do tend to have an effect on interest rates, especially when large changes happen in a short time, but the housing market is very complex and there isn’t a direct correlation between the price of a house and the rate of a 30 year mortgage.