That’s definitely a big factor. Low interest rates mean people can afford more house, and that in turn makes demand and prices go higher.
The only reason 90/100 buyers care about the price is its the maximum their banker told them they can afford the payment on. RE is unnaturally buoyed by absurdly low interest rates. It’s a mess.
Think about the people who are now trapped like tax serfs in a certain jurisdiction because, once again, they cannot sell their house. The transaction costs on a home sale are 5-10% of the purchase price minimum. If you’re at break-even you’re as good as underwater.