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If the US has huge inflation hit, Interest Rates Will then Go up, What happens to the housing market?

I have had a debate with a friend of mine. If the US gets hit with inflation, the federal government will then raise interest rates to combat it, what will happen to the housing market? Interest rates go up, housing prices go down?

Public Comments

1. But you said inflation hit, so houses went up. If you raise the interest rates it will bring down the housing prices. So if the feds do the right thing housing prices should stay constant.
2. Mortgage rates become unaffordable. This reduces demand because there will be fewer buyers who qualify for loans. Housing prices collapse will until the supply can meet the lowered demand. The way you stem inflation, is to curb spending. Housing is usually the first to feel this.. Inflation also destroys an economy's marginal propensity to consume, by absorbing all the extra money that people would normally use to buy something better, like a bigger house, and instead puts it into paying for necessities and maintaining the things they already have.
3. We have seen a huge increase in housing costs directly tied to low interest rates. If interest rates go up, the cost to borrow money goes up. So borrowing $300,000 at 5% will be $300 less than borrowing $300,000 at 6% monthly on a 30% fixed mortgage. If inflation starts to take shape, the federal government will raise interest rates to fight it. By raising interest rates it will push housing costs down. Because less people will be able to afford to borrow money that gets broken down on a monthly basis Even though theoretically inflation means the dollar is worth less therefore buying goods will cost more because of the weak dollar