Summarized version for now, I’ll try to enhance it more in the future:

 Increasing or high interest rate phase:

• Costs for corporate investments go up or are higher
  • reducing their IRR,
  • increasing payback periods,
  • or just making them unprofitable
  • a lot of corporate investments get shelved during a period of high interest rates
• Costs to buy house go up
  • Higher interest rates = Higher monthly payments
  • Higher revenue required to buy a house of same price
  • Lower home affordability
  • Less houses built, or lower priced houses built due to market conditions
  • Lower demand drives down house prices
• Borrowing costs to invest in stock market go up
  • Lower demand decreases stock prices
• Fixed income markets become more interesting than stock markets
  • Less risk, guaranteed returns
  • Stock prices go down
• Options pricing affected, longer term options more expensive (black scholes formula)

Decreasing or low interest rate phase:

• Low costs for corporate investments
  • Higher IRR
  • Lower payback periods
• House payments are lower
  • Same revenue buys a better house
  • Higher demand drives house prices up
• Cheaper to borrow money to invest in stock market
  • Higher demand increases stock prices
• Fixed income markets become unattractive
  • Quest for returns turn to the stock market driving prices up
• Options pricing lowers