It's basically true. A simple example is housing. People will generally borrow as much as they're allowed and spend all of that on the best house they can afford. That tends to raise property prices as the borrowed money chases housing stock. That's been very evident these last years.

The opposite occurs when interest rates go up, people can no longer borrow enough to pay asking prices, demand falls and prices fall to meet demand.

There are obviously other factors involved but the basic relationship holds.