Senate Version of Tax Bill Saves Mortgage Interest Deduction but Realtors Still Unhappy

Real estate professionals revolted when the House GOP tax bill called for cutting the mortgage interest deduction for taxpayers from $1.1 million to $500,000. Granger MacDonald, chairman of the National Association of Home Builders, went as far as saying the plan “abandons middle-class taxpayer.”

However, the Senate version of the bill opted to save the deduction by only decreasing the total eligible debt by $100,000 to $1 million.

A new analysis of both the House and Senate plans from home listing site Zillow shows why: both tax plans strive to offset losing some of the benefits of the interest deduction on higher value mortgages and reducing deductions for state-and-local income and sales taxes by increasing the standard deduction. While the House bill allows up to $10,000 of property taxes on a home to be deducted, the Senate plan does not permit any property tax deduction at all.

Many in the real estate industry also worry that a major change to the mortgage interest deduction would crush demand in expensive markets. They are especially concerned that it would hinder demand from first-time buyers in particular.

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In this issue:

Renting Is Overtaking the Housing Market

Weekly Mortgage Applications Rise As Rates Pull Back

US New Home Sales Soar to Highest Level in 10 Years

Senate Version of Tax Bill Saves Mortgage Interest Deduction but Realtors Still Unhappy

Homebuilder Confidence Rises to 8-Month High

Foreclosure Crisis Lurks in Hurricane Damaged Areas

Fannie Mae Launches Program to Help Boost Homebuilding

Facebook Announces New Features for Home Sales

8 Markets Where Housing Inventory Is Actually Increasing

Three Facebook Updates That Affect the Way You Advertise Your Real Estate Business

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