Does the 1% rate increase affect business sales?

Yes. And no.
Seller's may be feeling the pinch most due to a rate increase on their (often multiple) lines of credit. 
Bank financing is relatively uncommon in small business purchases, but if a buyer was requiring financing the increased cost of borrowing maybe more than just the "cost of doing business" and could stop or delay a planned purchase.
But those are all maybe's. 
Many Sellers are selling for other reasons. Retirement. Family/health concerns. They're ready for a change or a new challenge. Need to move their investments into a different part of their portfolio. 
Some Buyer's are "cashed up" and don't require external funds to complete on a purchase. They may be more focused on a long term stable lease without exorbitant additional rents or a demolition clause.

I guess what it all gets down to is that each deal is unique as are the parties involved. The market is doing what there market always does. It's like the tide and who it affects is much the same.

If you'd like to discuss your plans for buying or selling a business, drop me an email or a text and let's connect!