>"Second order effects. Interests rates are not low in a vacuum."

Uh, no. My mortgage is inarguably cheaper due to low rates. So is my car payment.

Is it possible that the price of the asset I'm borrowing against is higher because low rates are inflating asset prices? Possibly. It depends where I live and when I bought my house. If I just re-fi'd at lower rates, it's cheaper, period. Besides that, the inflated price shows up as an asset on my personal balance sheet.

These second-order effects are relevant, but not substantial.