What happens to House Prices if Mortgage Interest deduction ends?

[Llewelyn A.]

Unfortunately, it seems that this Government wants to take away any kind of Debt Financing of either Business or Home.

It's pretty much in the Republican Tax Reform policy that they are pushing ahead. What's even more concerning is that there is an Opinion piece from the Party's think tank website, the Hill, that came out just recently. It is starting to seem to me that there is a genuine push to eliminate the Mortgage Interest Deduction.

Here is that Article: Time to Eliminate the Mortgage Interest Deduction

I anticipate that if the Mortgage Interest Deduction is taken away for Home Owners, then those investing in SFH will be vulnerable to a price correction.

However, if Debt Financing is eliminated completely, including Corps/Partnerships/Sch E properties.... then the whole RE Market will take a dive.

Just curious if anyone has been following this. It would seem that it's very important but it looks completely ignored.

Investor Llew

[John Thedford]

The mortgage interest deduction for personal residences makes little difference unless you have a large mortgage. I believe you have to itemize to receive it. Of course, NAR will oppose any such move contesting it will be bad for the RE markets and homeowners in general.