In theory, as mortgage interest rates increase, some buyers will be priced out of considering some homes that they would like to purchase. 

If enough buyers are priced out of being able to afford their preferred home, maybe we will see fewer offers on homes listed for sale. 

If there are fewer offers on homes offered for sale, then perhaps buyers won't keep having to pay so much over the asking price.

If buyers aren't paying so much over the asking price, maybe the 10% per year increase in median sales price in our area will start to move back to a more reasonable 3% to 4% per year.

But, thus far, these are all just theories and possibilities, not actualities.

Despite significant increases in mortgage interest rates over the past month (and 3 - 4 months) we don't yet seem to be seeing a decline in the amount of buyer interest in many or most new listings.

I'll keep wondering if we will see that shift happening... and I'll keep crunching the numbers to see if there is evidence that it is happening... but if you are holding off on buying a home right now because you are absolutely certain that a shift is coming... it might be a long wait.