Obed Manuel is right. The price of a desirable house is determined largely by the amount of credit available. A decrease in the interest rate will mean that there is more credit available, and thus the price of housing in nominal dollar terms will increase over time. If there was absolutely no credit available to purchase residential property, then the price of property would decrease by 90% overnight.
The same principle applies to student loans. The price of college fees at a desirable college is dependent largely on the amount of student loans available.