Things net out at the end for new home buyers.

The mortgage rate may be 3%, but the cost of your home increases at a much higher number causing the value you have in mortgage rate to be offset by the higher up front cost of a home.

People 'buy' a mortgage payment, not a home. Its why home appreciation 'slows' when rates are high, and we have had record increases in home values with mortgage rates super low.

Yes they are, in a sense that the outstanding mortgage debt grows at a slower pace than inflation.

However the 3% is guaranteed for ~30 years, so it's likely the bank would still come out ahead in the long run if inflation settles down. It's also not an infinite money slot machine -- you can only qualify for so many mortgages (which require large down payments) and houses are pretty illiquid assets.

This gets into a vicious cycle. Given that lots of people are effectively paid to borrow money, that boosts the money people can bid on a house, and so that itself pushes up the prices.

Low-interest rates on mortgages are a huge boon for sellers since the buyers have access to more money, and thus they can pay more. So, for the buyers, the "get paid" part only works if they flip a house and become sellers before the cycle bubbles and bursts.

Meanwhile, buyers who want to get a house just to live in it for the rest of their lives are having to pay much higher prices, and it has nothing to do with real supply and demand. Cut out all the speculators/investors/flippers and the situation would be very different.

Maybe we shouldn't even continue the premise that a person who doesn't live at a property can "own" it.

Worth noting: mortgages typically compound daily, whilst annualized inflation figures measure inflation as if it compounded annually.

A 3% APR mortgage comes out to about 4% APY, which is a little more directly comparable to an annualized inflation figure.

How do you think boomers got rich over the last 50 years?