That graph doesn’t really prove anything, though, because interest rates and housing prices are already correlated through economic growth: fed raises rates when economies are hot, and lowers them when they’re not. Also house prices go up when economies are hot, and don’t as much when they’re not.

The most recent lull in prices correlated with a lull in rates, which kind of goes against your overall point of higher rates pushing prices down because the cost of capital increases? But maybe I’m misunderstanding your point.