Question

Glaeser and Gyourko say that the mortgage interest deduction does not make good policy. Why, according to them, is this the case?

Answer 1

Glaseser and gyourko said that mortgage interest deduction does not make good policy this is because even after bashing so many year in the mortgage industry for underwriting they bashed the federal government for ignoring the problem of low interest rates and then blaming the investors for no money down loans

He also that we have experience some important points regarding interest rates like in year 2000 and 2006 the intrested rates were dropped by 1.3% and this was responsible for on the rise in the price by only 10 percent. Therefore this doesn't make the good policy