It looks like the national increase in real estate values is around 6%. How much of an effect will the elimination or partial elimination of our current interest deduction have on real estate values going forward?
A couple of months ago, I was doing a refinance for a couple. I was reducing their remaining 26 year mortgage into a 15 year mortgage. The topic of interest deduction came up and the wife made the following statement: “If the interest deduction goes away, out home goes on the market.” This middle America family may be making that choice, as may many others, who just don’t see the benefit of owning.
I wonder how many of these economist own or rent? Their opinion may depend on that belief.
By: Amilda Dymi