I mean it could be worse, the government could declare the old currency is deprecated and that we can only convert $2000 USD into the new currency.
Look, a 10% interest rate isn't that much on a $10,000 personal loan. But that doesn't even buy you a new car today and for a measly apartment in a major city you gotta be prepared to spit in the vicinity of $1,000,000. This insanity has to stop, hence the high interest rates.
The prices are high. Not the interest rate. And yes the distinction is important because the solutions to each problem is different.
Not sure high interest will result in any meaningful decrease in real estates prices. Best case they might stay stagnant for a few years which would allow wages to catching up a bit.