Bob Wright and David Frum argue over who caused the housing meltdown.1 Bob argues that large deficits drove up interest rates + caused the credit crunch, Frum blames it on unqualified people getting houses. I'm going to bat for Bob here... Many people got adjustable rate mortgages, so an increase in interest rates could make a just-barely-affordable house go out of reach.
1. They call it the credit crunch, which from my bench refers to the troubles of banks / investment houses e.g. Bear Sterns, IndyMac., but they are clearly talking about the housing market (which in an economy of course interacts with the banking sector).