No correlation show in the past.

Could that change?  With low rates for so long now there could be a "shock" as people refuse to accpet higher rates but one rational in long run is this:

people buying $500K homes downgrade to the $400K bracket and $400K to $300K and so forth....up and down the price spectrum.  Group on the bottom is priced out. So will higher priced homes have to drop?   Theoratically there is also a "price range" of homes at the top that is "priced out" but does that apply?  No, because the buyers in the "luxury" price ranges are typically much less 

What percent of incom does typical $250K buyer pay for housing?