I say it slows price appreciation but a small amount and no decrease in prices.
We’re talking about incremental interest rate increases here. Also this partly is in response to strong wage growth (ie wage inflation). If wages continue to grow or stay where they are now, these people will be able to afford more or current housing prices, which supports existing prices or continues pushing it up.
Wage Inflation can be painful, sure. Stagnating wage growth is also bad and a sign of a stagnant economy.