I think there's some bifurcation in the market.
Case in point with my own experience --
I "own" two homes (well, 1.5 homes): (1.) my childhood home in Boone, which I inherited with my brother when our father passed away, and (2.) my actual residence in Waukee with my wife. I say "own" because I think the bank holding the mortgage effectively owns the equity needed to cover the outstanding balance. Zillow says the one in Boone is worth about $250,000; the Waukee one is, well, several times that amount.
The Zillow estimate for the Boone home has been slipping for months. It even took a good hit this morning or late last week. The Waukee one, though, at a completely different band of the market, has held steady and has actually increased slightly. I think the affordability issues caused by higher rates is going to matter for a certain class of buyers/sellers/homes than it is for people with fewer concerns like that.