The second question I notice the real estate agents DID not answer. Of course, it again is complex. If you are selling, it is better to hope neither happens, but you have little control over rates so you can only lower your price. If you are buying, it is always better to negotiate a low home price than a better interest rate. The interest rate can always later be renogiated down if rates fall, the price never can be. But again, you want both prices low and interest rates low, and who is God that they can perfectly determine this perfect conjunction?
i suppose house prices can drop upto 10-15% more as the lenders are very strict and rates are going up and closing costs are increasing