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?

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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