I'm neither talking about sellers markets or buy vs rent.

I'll put it as short as I can: if people can borrow more, then prices will go up, because everyone needs a home, and there is a finite number of homes. You are basically fighting with everyone else who want to buy a home when you want to buy.

So if everyone can borrow more (low rates) then that doesn't give you a better house, because everyone can now bid higher too.

And the reverse when it's expensive to borrow of course.

You are talking about day to day economics, and yes I am sure you made a good choice stopping renting (economically).

But you seem to think, that in a market with very expensive loans, it's worse somehow.

If it's very expensive to borrow, the 450k house suddenly has no buyers and has to drop the price. Over time it becomes a 300k house (for example).

Are you better off with that? Yes. Not because you'll pay your bank less, but you'll pay them during a smaller time (at 12% it doesn't help taking out a 25 year loan, it doesn't make sense).

Also, as a bonus, usually when we already own, we go from less hood to better (better/bigger/more expensive) so if prices are low it's cheaper to upgrade.

And on a final note, the "450k worth", is not useful money, except if you sell it to live in a less good place (or if you have many houses) which people rarely do.

Hope it clears it up a bit!