Of course it does. However, the net result of lowering interest rates is just that the middle class pays through the nose for assets (housing) instead of for money (debt service).
The parasite sucks the same money from a different location.
Wealth inequality with high interest rates and with low interest rates are two sides of a very similar coin.
The only real fix is to tax the rich.
This is unrelated to housing, but you have the order backwards. Prices went up, and students took out loans to pay them. The root cause of the increases in higher ed tuition is dis-investment in higher education by state legislatures, not increases in expenditures by colleges. Given that most colleges are state-run or non-profits, they can't just increase prices and dump the proceeds into profits; they have to spend the money they bring in, and I have yet to see any evidence that universities are spending 100% more (or any large number that scales with the recent increases in tuition) on a real per-full-time-student-equivalent basis.
https://fivethirtyeight.com/features/fancy-dorms-arent-the-m...
The school I went to in the 90's has been on a massive building spree the last 20 years. Many large new buildings. The number of students has nearly doubled in the same time so it's not a complete waste. They even built a new clock tower with funding from some rich donor.
No. Just like the student loan crisis, when you make borrowing money really easy it drives prices up. Home prices vary inversely with interest rates. Student tuition well that's even worse because the risk to the bank is zero (because the government is backing those loans).
Unfortunately some people think they can spend their way out of problems without making worse problems - I'm looking at congress here.
As they say, when you're in a hole the first thing you need to do is STOP DIGGING. For personal finance this involves cutting up credit cards so you can't go further into debt. For the loans they need to stop talking about the government paying them off (or some of them) and STOP guaranteeing them - then we can talk about the people who are already fucked. For everything else we need the Fed to increase interest rates to a good 3 percent or so. Yeah that will tank the economy short term, but I say so what it's already going to crash lets get through the pain and straighten things out.