3.51% this week, and that's a recent low, so “around 3%” is a stretch.

> tax deductible, you’re actually winding up borrowing at below inflation.

If you assume inflation will soon return to 1990s or earlier levels, maybe; US inflation has been under 2.5% for all but 5 years since 2000, and averaging even lower; you have to be in a pretty high tax bracket for even 3% to get close to breaking even with inflation at those rates, and actual rates are above 3%.