This has my vote for the worst real estate article of the year:
Three Belgian economists have shown the world that they know how to work a calculator. They concluded that if the mortgage-interest deduction went away, homes would be selling for 20% less.
They didn’t talk to any buyers…..they didn’t talk to any realtors…..and they sure didn’t talk to any home sellers.
There is more to it than that!
- The benefit of the mortgage-interest deduction has been minimized by record low rates.
- There are many other reasons to buy a home besides the MID.
- Sellers will wait to get their price.
The MID is icing on the cake for home buyers. It doesn’t impact their ability to get a mortgage, and if the if the government takes back a tax deduction, it’s not going to stop families from wanting to have a place of their own.
Don’t be surprised if you see this article flashed around by NAR types who want to keep their lobbyists employed.