[bvandewalle]

This is a common fallacy. Lower mortgage rates mean that houses are more expensive as other bidders are able to qualify for the same mortgage rates. There is actually quite a lot of papers showing that it's better to buy at a high mortgage rate and refinance down the road.

As for your other comment, renting or paying a mortgage is a cost/benefit analysis that is way more complicated than "paying someone else's mortgage". If you live in a desirable locale (Bay Area, Seattle), the Buy/rent ratio means that at this point you are most probably ahead by renting and investing the difference in the stock market.