Real Estate Pop Quiz
Quick, which of the following items make housing more expensive?
A. Higher interest rates;
B. Limiting (or eliminating) the mortgage interest deduction;
C. Less capital for funding mortgages, due to a shrinking role played by Fannie Mae and Freddie Mac (the so-called Government-sponsored enterprises);
D. Requiring Buyers to put down 20%.
Answer: all of the above.
Incredibly, all four of the above proposals are now under consideration by Congressional policymakers.
Query: is now a smart time to make housing more expensive??
Bonus question: if housing does in fact become more expensive, what do you suppose that will do to demand — and therefore prices?