I haven't ever knit with Mohair but I do have mohair scarf and shrug. It is itchy. I wouldn't use it for something you want wear against your skin. But I like the pieces I have.
Lotus Blossom Tank in SWTC Bamboo
Mandarin Blouse in cotton fleece
sockettes in KP Bare tweed
Fat Bottom Bag from SNB - Crochet
Saving Fish from Drowning by Amy Tan