Low interest rates seem to have made housing more unaffordable. Instead of enabling low capital intensive personal loans, they have enabled high capital intensi

Low interest rates seem to have made housing more unaffordable. Instead of enabling low capital intensive personal loans, they have enabled high capital intensive investment banking. This is because the marginal cost of investment was budged a few tens of thousands of dollars for households, but millions or even billions of dollars for investment banks and private equity firms. Less capital was available for personal mortgages as a share of the total capital market.