As a seller, it is wise to be sensitive to an increase in interest rates, as it could impact how many potential buyer can purchase your home, and how much they can pay for it.
However, the impact on your sale is regional. In the area where I practice, the increase of 0.25% in interest might result in the increase of $200 per month. For a buyer with a payment of $4500 per month, a 5% increase may be absorbable.
Always discuss with your REALTOR® the right strategies or options you have in your market. Interest rates will always affect buying power, and you want to be sure your buyers are strong!