This is totally anecdotal at this time, so I'll see what the data seems to indicate when I compile my market later this month, but thus far..

That is to that I suspect...

[1]  Buyer demand is decreasing, somewhat, due to higher mortgage interest rates.

[2]  The amount of buyer demand in the market is still greater than the amount of seller supply.

Case in point - the anecdote - would be two very (!!) similar properties that came on the market over the past few months...

The first property came on the market when the average 30-year fixed mortgage interest rate was around 4.3%.  There were six offers within 72 hours.

The second property came on the market when the average 30-year fixed mortgage interest rate was around 5.1%.  There were three offers within 72 hours.

So... yes, I think higher rates will reduce buyer demand, but that reduced demand might very well continue to exceed available supply for some time to come!