Second Mortgage Shop

I answered the question but i'm not sure if my answer is fully correct or if i need more information

Here is the question:

You read in the newspaper the following two pieces of information: First, mortgage rates rise from 6% to 8% and second, the expected rate of increase in housing prices rises from 4% to 8%. Do you think this news can affect people's decisions on buying houses? How and why?

Answer:

Im thinking that this news will negatively effect people to buy houses becuse houses will be more expensive and the cost of maintaining the house will also require more funds. However, I don't really know if it can positively effect people as well because since housing prices go up, there is a greater rate of return on the house (i'm not sure if I got this right).

Can you tell me if I said something that was off or I can add something to my argument. Thanks xD

If this news gives real interest rates then in short-run people will buy less houses (if they don't expect interest rates to rise further). But it's consequence of fall in supply (houses will be sold for higher prices) on demand-supply graph and fall in demand (higher housing costs).

In case if news gives you nominal rates then conclusion may depend on people nominal income expectations or inflation rate.