Housing Multiple Choice
What do local real estate insiders think is the biggest threat to housing prices prospectively?
A. The winding down of Fannie Mae and Freddie Mac.
B. A spike in mortgage rates.
C. Phasing out the mortgage interest deduction.
D. Imposing a tax on real estate commissions.*Answer: C
The above observation is anecdotal rather than scientific.
However, to paraphrase an old Bill Maher movie title, “But I don’t think I’m wrong.”
In particular, the worry is that the second home market would bear the brunt of a phase-out on deducting mortgage interest.
*Apparently, all of the above are now being considered by policymakers.
