Will spiking interest rates increase house prices?

[Robert Steele]

There's definitely been an up tick in mortgage rates lately. We are at the highest rate in more than a year now according to this chart from Freddie Mac.

Even Bernanke said in reference to the spike in interest rates: "We were a little puzzled by that".

Do you think that if this persists house prices will go down as buyers buying power is reduced or will home prices go up due to increase demand from buyers that have been sitting on the sidelines and are now afraid of missing out on locking in historically low interest rates?