Mortgage interest rates have been at an all-time low. it is possible that they will go all the way up to 5%, maybe even this year. Back in 2006 during the housing price peak and before the housing market crash and the great recession mortgage rates were over 6.3%. When we look at mortgage rates I think putting them in context helps.
Higher rates are bound to have an impact on the housing market. Here in the metro area, there are so few houses on the market that it will be hard to see the impact.