“People Don’T Buy Houses Because Of The Loan Deduction”—Or Do They?

“I don’t think the mortgage interest deduction plays a large role in that decision.
The mortgage interest deduction, however, gives bigger benefits to those in higher tax brackets with larger loans.
“When combined with the elimination of the state and local tax deduction, these efforts represent a tax increase on millions of middle-class homeowners.
“I think people buy homes because it represents security and a way to build wealth and a sense of stability,” said Laurie Goodman, co-director of the Housing Finance Policy Center at the Urban Institute.
As for overall homeownership, he points to other nation’s like Canada and Australia, which have no mortgage deduction but have very high homeownership rates.

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