It's comments from people like Greenspan and the resulting news-lackie articles that is responsbile for the downturn in home sales. We are still at 6% interest rates. 6% is still more than outstanding, as is 7%.... I remember the Jimmy Carter era of 21% and for years thereafter and clear through the Clinton administration 9 - 11% was considered a decent rate. Anyone sitting back out of media-related fear and not taking advantage of continued low rates to get into a home is insane.
So there is no bad time to go into real estate when interest rates are low? Japan offered zero percent loans during their real estate bust and it had no effect. Real estate just kept deflating. Moral of the story: If you are in a real estate bubble, it may not matter how low interest rates are.