Black and Buono Blog

The risk of venturing into home ownership has been keeping many potential buyers from entering the market and the housing sector continues to struggle as a result. Mortgage interest rates are currently on the rise and the last several weeks are revealing an upward trend for long term rates. American citizens are looking for stability and predictability to help them make the jump into the home buying process. Predictability however, may be taken away.

One carrot that has been dangled to help promote home ownership is the primary residence tax and interest deduction that new home owners could benefit from come tax time. That deduction is on the chopping block and homeowners may no longer be rewarded as they have been in the past for taking on the risks and responsibilities of owning and maintaining a home. The national deficit is swelling more than anyone wants and the income tax deduction for mortgage interest is now a potential provision that the government may extinguish. The cut back is one that the federal government is willing to entertain as a way of working towards lowering the national deficit. It is being considered by the National Commission on Fiscal Responsibility and Reform and it is among several trillion worth of deficit cutting ideas on the table for the government to consider. All in the housing sector will be closely monitoring this push as outcomes will affect the American dream of home ownership.

Source: Stephen Johnson, Author