Once mortgage interest rates rise, housing prices will fall.
A $700,000 mortgage at 30 years on a fixed 4% rate costs about $3342 a month, not counting insurance and taxes.
At an 8% rate, a house of $455,000 costs about the same each month.
Since most people buy houses not on what they cost, but on what they can pay each month, to get the same number of potential buyers the house price has to drop $245,000.
There may be a lot of people crying they are underwater when that happens.