It was not the interest rates that caused the last housing bust, it was the CRAZY loans that were being made from about 2003-2007 that are NOT being made now (especially the ones in 2005-6).
Sure home prices are crazy but the loans are not for the most part. what that means IMO is if you do finally get some builder to start building and selling at a lower home prices (which I think will happen at some point), it will not necessarily lead to the foreclosure wave we had from 2008-20011 or so.
