I thought home prices were high because new home construction fell off a cliff after the 2008 market crash and has never fully recovered - thus leaving a massive shortage of homes and the Millennials (i.e. Baby Boom 2) generation now reaching the age where they want homes for their kids. Low supply + high demand = high prices. Don't see that changing anytime soon. What we should expect from higher mortgage rates (what I as an old-timer would call "normal" mortgage rates) would be a cooling off on prices. We're already seeing that happening. That's an example of how high rates combat inflation. Your food and energy costs may be soaring but housing costs have just been brought in check.