> alleging that in a lower-rate environment sellers will raise prices

Didn't we see exactly this scenario play out in 2001-2005 and again during Covid?

> Heading into 2020, affordability was increasing—even in the face of rising home prices—as buyers benefitted from historically low interest rates and steady income growth.

> The national HOAM index fell from 101.94 in February 2021 to 98.22 in March 2021, indicating homes were no longer affordable for the median-income household.

Rates dropped which caused a demand-side surge (because more people could afford the mortgage) which quickly turned into a market dynamic that caused home prices to increase beyond median affordability.

https://www.atlantafed.org/economy-matters/community-and-eco...