The mortgage interest deduction is a ridiculous, market-distorting handout to higher income people. And I say this as someone who bought an absurdly expensive bay area house last year.<p>Tons of people in cheaper areas pay so little in interest and property taxes that they <i>don&#x27;t even itemize their deductions</i>.<p>I don&#x27;t know how it ever seemed like a good idea. If everyone can afford x% more housing cost, what happens? Housing costs get bid up by x%.