I don't understand why people just don't call out mortgages for what they are - leveraged loans that let you get ~4-5x the return on housing gains. (Assuming a simplified 20% down scenario and you refi on a regular basis.)

I suspect that most housing demand stems from just people wanting in on this (subsidized) investment. From what I can tell, this is the retirement plan foundation for many Americans.

I guess this works until you come up on a generation that can't afford the last generation's houses? Or you need to be a company to afford the house and it gets "permanently" removed from the individual market.

I'm wondering if lowering the maximum fixed mortgage length by one year every 2-3 years until we get down to 10 years would help moderate some of this due to there being a bit more risk to consider.