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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.

If you purchase Real Estate for the long haul, buy a house in a desireable area and take care of it, over time, in the USA you're not going to lose money. We had a house in California that appreciated rapidly during the last up-turn, we made a profit, but not as large as we could have made two years before we sold it, but the house sold not long ago for four times what we sold it for 12 years ago.

These interest rates are great. They may stay around 6% or go to 7% of drop to 8%, but I've lived long enough to tell you 6% is great.

I don't know if Japan has the same tax incentives for homeownership, so can't comment on why they have problems, I just know that our prices are very reasonable when you look at property around the world at as a whole and historically property has never been a bad long-term investment in this country... as long as you are careful in the purchase.