That is a valid argument gmt but interest rates alone can be...

That is a valid argument gmt but interest rates alone can be deceptive.

I was employed in lending back when interest rates were $13-17%. The big difference then was that lending institutions acted as an efficient filter to stop high risk clients from over-committing.
E.g most financiers would only lend 90% of their valuation which strangely tended to be often around 90% of the purchase price. Thus borrowers could usually only borrow 80% or so which meant they had to have a substantial deposit. That seemed pretty tough to many and perhaps was but it meant there were very few subsequent foreclosures.

One oddity as it seemed at the time was as many as 50% of mortgage seekers would come in, (including many professionals), give us their data on savings, earnings, expenses etc and then ask 'how much can I borrow?' I doubt that has changed and this is where the pain is going to come in because borrowers and lenders have conspired to take it right to the edge with no safety margin at all.

It's going to get nasty.