The Washington Post has this article on Five Myths about interest rates. I believe there is a sixth myth, but I don't have facts to prove it, so let's call it an assumption. Here it is:
Low interest rates drive demand for home purchases higher. I doubt it. Low rates drive refinance and a person with a refinanced mortgage would be less likely to sell and buy at a relatively low, but higher rate than they have, if rate is the deciding factor. Decling rates also influence consumers to sit on the sidelines and wait. When the low point is missed and the enthusiasm cools, some people step out of the buying line and move to the sidelines again.
If the evidence exists to prove my assumption right or wrong, send it to me and I will post what you have.
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