Increasing Mortgage rates and property values? (loans, interest rate, credit rating, finance)

[NatasNJ]

With property values dropping pretty much everywhere will the recent spike in interest rates keep the bottom from holding (assuming it was near or close to bottom in your area) or will the rates force prices even lower?

[texdav]

What we are seeing in loans is that rates will depend more on ones credit ratring and income level;thus abiltity to pay /risk. I just saw that GMAC will have 700 credit rating as a minimum to finance a car now.Banks will ost ikel;y go back to different rates depending on waht they thionk of you as a risk or even refuse to loan.