Not 3x. But 10+ and yes that makes it a lot cheaper to buy a house in 1983 than now, despite the change in interest rates.
My parents bought their house in 1989 for $270k and today it's worth about $500k. Not sure what market increased 10x... didn't the housing markets implode a few years ago?
But even so, I think you're confusing what the interest rate does. It does NOT make it more or less expensive to buy a house. It only makes it more or less expensive to borrow the money. (The proof to this is that if you bought a house today and you paid off your entire mortgage tomorrow, you'd pay the same amount whether your mortgage interest was 2% or 20%). So you can't compare the interest payment of today's $500k mortgage to the interest payment of a $100k mortgage from 1985, because the loans are different sizes - even if they would buy the same exact house at their respective times.
So when you say that "it evens out" because interest rates have fallen while home prices have risen, that's misleading. Because if you borrowed $300k in the 1980s or if you borrowed $300k now, your monthly payments would be much lower now. The difference is that today your $300k will buy a smaller house than it would have in the 1980s, and that's due to rising home prices and inflation, not the interest rate on the mortgage.