“Secondly, but most importantly, such a deduction shouldn’t be the determining factor when purchasing a house. If you need such a deduction to afford the house, then the house costs too much.”
Let’s assume a “worst-case scenario” — in this case, that the deduction for mortgage interest is eliminated in its entirety.
How will this impact the housing market?
I sense home prices will be forced downward, but by how much?
Will it affect interest rates for mortgages?
Well, it might mean that average housing will become more affordable for those with average incomes, which would be a good thing.
Those are good questions that I have no answer for. There are various elements affecting housing. But, I still 'think' prices are still overvalued. Unfortunately, the main indicator on housing prices won't be the deduction, but the Joe Biden three letter word: Jobs.