How do lower interest rates typically impact both investment levels and the housing market, considering their effect on savings rates?

Lower interest rates make borrowing money cheaper, which encourages businesses to invest more in new projects and equipment. When companies can take loans at lower costs, they are more likely to expand and hire new employees, boosting economic growth. In the housing market, lower interest rates mean that mortgages are less expensive, making it easier for people to buy homes. As more people enter the market to purchase houses, demand increases, often leading to higher home prices. However, lower interest rates can also lead to lower savings rates, as people earn less interest on their savings, which might make them less inclined to save money.