As far as I know, mortgage rates dropped to entice buyers who otherwise couldn't afford to buy. The problem is that while sure, 1.5% is a very low interest rate, income hasn't risen anywhere near as fast as house prices.

Here in Canada the average income is just under $55,000 a year. In Victoria most houses costs over 1 million, and condos aren't much less. Even if interest was zero percent, most people can't afford to buy property.


I work here