Mortgage Interest rate hike can cause builder to drop prices?

[Niraj S.]

Hello!

I am trying to buy my first single family home in the Phoenix area (Gilbert - to be specific) but as the news come around about the interest hike, I am hearing and reading a lot of stories about holding off in buying since a hike in interest rate will cause the builder to lower the base price of new home construction.

Can anyone shed some light on this? 

Thank you!