Interest Rates are Low but are Mortgages Cheap?

It is claimed that mortgages are at present cheap so that people can afford higher mortgages, and hence more expensive houses, than previously. But that claim is based on money illusion. Nominal interest rates are at present 'low' primarily because of relatively low inflation. People contemplating mortgages should look at real values or they may face an unexpectedly large debt burden in the future. [ABSTRACT FROM AUTHOR]