Saturday, November 20, 2010

REMOVE MORTGAGE INTEREST DEDUCTION?

NAR Chief Economist and GURU
Lawrence Yun, said,
According to the
WALL STREET JOURNAL,
that removing the mortgage
interest deduction completely
could cause home prices to
fall by about 15%,
should it be wiped away
entirely.

“”That is,” he said, “an ugly 
scenario, particularly given 
housing’s fragile state.”

While the chances of the 
deduction going away 
are slim, he painted
a grim picture of
what could happen.

“Housing is critical 
to the economy,”
he said in an interview.
“In my view, 
[losing the deduction]
that will surely put us in a
broader economic 
recession.”

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