While usually true, a situation like the current one in the US, where the Fed raised overnight rates 66x in 18 months causes a different dynamic.

Specifically, over 80% of current mortgages are at rates below 5%, while market rates hover around 7.5%. As I wrote elsewhere, this acts as "golden handcuffs," locking most homeowners into their current mortgage and home.

As a result, supply is extremely tight (in my zip code there are fewer than 20 homes currently on the market, which is about one month's supply - an extreme seller's market - despite the high rates.