Well, the classic model of how this should work is:

1) Economy sags, people have little demand to borrow money for investment

2) Interest rates are lowered to spur investment

3) Investment takes place, economy recovers

4) People are much hungrier to borrow money for investment, so interest rates increase

We haven't reached (4), and in addition, it should seem surprising that borrowing money to put it into real estate will help the economy to recover. Unlike investments into production, an investment into land doesn't seem to actually affect supply and demand in a way that will help the economy grow.