> rising interest rates

Doesn't matter. There are always buyers who aren't sensitive to interest rates - all-cash buyers, buyers with massive equity who can stomach a high interest rate on a small mortgage, and of course corporations and house flippers.

> looming recession

No one has ever successfully predicted a recession. Every historical recession came out of the blue with no warning. This is no different. The media and corporations are certainly trying to convince us we're in a recession, but we have the lowest unemployment rate in 20 years and a strong economy so no one's buying their FUD.

>drive sales prices further upwards

Three words - supply and demand. No supply, sky-high demand regardless of economic conditions or interest rates.