A look at the 30 year mortgage rates over the past month paints a frightening picture. If the artificially suppressed rates were to continue to rise off the historically all time record lows you can quickly do the math on the effect to home prices.
Higher rates = Higher payments = Less Purchasing Power = Lower Prices
That is unless of course employment wages begin to rise along with the cost to purchase. (Sorry, had to throw a joke in there to keep everyone in good spirits)
The Federal Reserve may soon have to step in and announce the purchase of every mortgage in existence to keep rates low. (About $14 trillion worth)
Ben Bernanke's worst nightmare: