Originally Posted by Brock
Owning a home is already a giant pain in the ass, and people want to take away one of the few positive aspects?
If the deduction had never existed, I think housing prices would be much lower. So you've still have the pains, but you would've paid 40 percent less for the house, or some such amount, which would in turn save a ton of interest that might be as much or more as the deduction.
At least, that's my theory. The deduction makes home ownership cheaper than it ordinarily would, and that has to have some sort of impact on the market. It seems to me that along the line the various middlemen take advantage of that to up their profit, with prices passed along to the buyer. It's hard for me to believe that the big banks haven't figured out some way to skim off part of that massive amount of market intervention.