Saturday, November 20, 2010

REMOVE THE
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]
will surely put us in a
broader economic recession.”
 

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