And also note that inflation is next to non existent right now. A few years of 3% inflation would do more to fix the housing market than all government assistance put together at this point in time.
PS: I still think we should cut government spending by around 30% AND remove the home mortgage tax deduction but both of those need to be slow changes or they are going to cause a great deal of harm.
Removing the home mortgage tax deduction will cause the price of houses to drop, because no one would be able to afford the more expensive houses anymore, and they would have to drop the price to make them affordable.
The only thing that the tax deduction did was to raise the price of houses.
PS: I still think we should cut government spending by around 30% AND remove the home mortgage tax deduction but both of those need to be slow changes or they are going to cause a great deal of harm.