Mortgage amortization (pay-back) periods are getting longer. Typical mortgage pay-back periods are between 15 and 30 years. But in response to higher real estate prices, lenders have been providing longer mortgages, in some cases up to 40 years.
Back when mortgage rates were 12%, people still bought and sold houses, which cost 70% less. If rates were 12% today, no one could buy a house! Certainly a 6-7% interest rate will put downward pressure on prices over time, but what will it do in the near term? (Keep in mind, this is all speculation.)