Given that most families have mortgages because they want to owna house,a  rise  in interest rates curtails strongly the demand. Less demand results in acooling of the economy and adjustement of prices int he production sector.

High interest rates will hopefully reduce also strongly the demand of houses and stabilize housing prices bringin asset inflation and the overheated construction sector to a more reasonable path.

HEre I rest my case that each coutnry is completley different and that in other countries increases in interest rates may cause inflation... (as in Spain in the 80 probably)

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude