3 ms·
The mortgage interest deduction started in 86. Or rather, the isolation of mortgages as tax deductible started in 1986. The effect has been in place for longer
by msellout 11y ago
The mortgage interest deduction started in 86. Or rather, the isolation of mortgages as tax deductible started in 1986. The effect has been in place for longer than the more recent trends you're describing.
I suppose that means I don't trust you?
- rconti 11y agoYou're overthinking it. Once again, I say, I am not talking about bubbles, I never said "more recent trend." It's very, very, very, very simple. You could afford $500k without the interest deduction. Let's say the deduction helps you afford a monthly payment on a $550k mortgage. Now you can afford $550k. The same is true of all other potential buyers of the same property. Guess what, a $500k property just became a $550k property. I didn't ask you to trust me, I didn't say anything about "more recent trends," I didn't cite it as a cause of the bubble, I didn't mention dinosaurs. I merely said I don't see how the mortgage interest tax deduction actually helps anybody, because it causes prices to rise accordingly.