LawrenceYun, NAR chief economist, expects near term home sales will continue to climb from their low this past summer. However, he voices concern regarding the mortgage interest deduction, an important component in housing affordability.
“Preliminary results of a new survey show nearly three out of four home owners and two out of three renters consider the mortgage interest deduction to be extremely or very important to them. Home owners already pay between 80 and 90 percent of all federal income taxes and additional tax burden would hurt them and the economic recovery,” said Yun.
Congress is considering modifications to the mortgage interest deduction as part of the deficit reduction plan.