This is an inforgraphic produced by the California Association of Realtors to share. With rising interest rates, rising home prices may take a slight pause and level out. Over the past 32years in this business, I've seen this happen many times. I started my career as a lender for a very large bank here in California. Not once did anyone ask me "What can I afford" but rather asked me "How much money can I borrow?" Rising interest rates, without an increase in wages, will most like make the current market start to cool. That said, I don't see interest rates rising too quickly.