Most people cant give up their 3% mortgages for 7% rates. Keep in mind many Lenders and Builders have discounted rates as low as 4%. Prices will start to go down and if you can get a discounted rate and a lower price it will be a good thing!
https://www.mortgagenewsdaily.com/news/07202023-existing-home-sales-nar-inventory-prices-appr