“For who?”
For the taxpayers.
“Which politicians are going to vote to screw people with low-rate mortgages?”
The 2.67% Trump Covid era mortgages were political handouts. The mortgagors got a too sweet deal. Even mortgages refinanced at 3.5% would be a sweetheart of a deal.
“The Fed has no retail banking operations.”
People who don’t refinance will simply not get an interest deduction anymore.
Let me know a single politician who'd vote for that change.