Sure, but it's probably boosted by the 10x leverage that mortgages allow. Let's say it cost $1M with $100k money down, interest-only loan. You get the 1.5% on

Sure, but it's probably boosted by the 10x leverage that mortgages allow. Let's say it cost $1M with $100k money down, interest-only loan. You get the 1.5% on the $1M, not on the $100k. So if you measure it like that you get $15000 interest on $100k, so in reality this is a 15% per year return, not a 1.5% return. Works the same in reverse when house prices go down, of course.