Over what time period? I think I’m America you can get a 30 year fixed rate mortgage. In Canada, 5 years is the most you can get even if the amortization period is 25-30 years.
In the US, 10, 15, 20, or 30 years in my experience
New mortgages will need that extra 50% driving home values down due to future homebuyers having less "monthly" purchasing power.
Of course. But buyers still need to be able to afford houses they purchase. With higher rates that might not be true.
Does it matter? From an individual's perspective, if you can make the monthly payment then all is well. Sure, the market may tank but all that does is effect your ability to move.