As Congress works to advance tax reform, lawmakers should think twice before taking action to undermine the nation’s existing and longstanding support for homeownership by eliminating or diminishing the effectiveness of the mortgage-interest deduction.
Going down this path would harm the interests of tens of millions of homeowners and those who aspire to own a home. It would also result in severe economic repercussions by reducing the value of the largest asset held by most American families. According to the latest Federal Reserve data, household ownership in real estate currently stands at $23.1 trillion. It only takes a 5 percent drop in home values to wipe out $1 trillion in household wealth. The housing sector is still recovering from the devastation brought about when home values plummeted less than a decade ago and the economy teetered on the edge of a second Depression…read more