...and low rates in the 2006-2008 corresponded to a huge real estate bubble...
Consider this: In my market prices rose 20% each year from 2000 through the crash. This was due to 1. limited supply 2. increased demand 3. cheap money.
Unless one pays cash, every buyer is a monthly buyer. If you have $1,000 per month to spend the more you pay in interest the less you can pay towards principle (the price of the house). The opposite also applies. That is what drives the price of the house.
I would say that easy credit (liar loans) contributed more to the sharp increase in cost of houses more than low rates. People who could not afford houses bought them with such loans as interest only, ARMs that reset much higher.
Those interested in selling houses and loans will tell you to "buy now" before rates go up but even if they go up a small amount (1%), the monthly additional cost for the average home is an additional few dollars.
One of the biggest factors I've seen is availability. I live in an "insulated" area with little buildable land available (can't get public water and sewer and the ground won't support septic systems). The median salary in my county is over $75K p/a and more people are still arriving (very good jobs situation).
So, it all depends.