Rates are inching up. Does that mean prices are coming down? I won't bet on it.

I have come across some very savvy buyers who believe that home prices will be coming down since interest rates are rising with the new administration. 
First of all if interest rates go up, I don't see them jumping up high unless we have some really dramatic things happening in our economy that might drive the rates up monumentally. With the new president, we might see fluctuations in economy which is normal. Is it possible that his policies might have significant effect on the economy and thus the rates? Absolutely. But at the moment we really don't know much. 
Second: We have had rates jumping high before and interestingly enough, they had the opposite effect on the home prices: They went up. Don't ask me why but they did. Look at the slide below.What I can tell you is that people always will be buying and selling homes irrelevant of the interest rates. Right now rates are very low. Is every buyer who I know taking advantage of it and jumping on it? No. Some for example can't buy. They might have had a divorce, bankruptcy, foreclosure or shortsale which  is holding them away from buying today. They will be ready in the future. And they will buy then even if rates are one or a few  points higher than today. It is what it is. 

Meanwhile, rates are at an all time low. If you know someone who is thinking of buying or selling a house, give me a call.