I'm not sure I understand the point being made here. Are you simply saying that higher rates means a higher monthly payment, and that the amount that prices have fallen is still not enough to offset the increase in the mortgage payment? That's fairly obvious.... for now.
The old "it's a supply constraint" argument will not age will IMO. FWIW, the fed agrees:https://www.federalreserve.gov/econres/feds/volatility-in-ho...