Mortgage Interest Deduction Would Hurt Housing Recovery, Economy

Dec 02, 2010, 17:33 ET from Santa Clara County Association of REALTORS

SAN JOSE, Calif., Dec. 2, 2010 /PRNewswire/ -- The Santa Clara County Association of REALTORS® strongly opposes the White House Deficit Reduction Commission's final report that suggests limiting or eliminating the Mortgage Interest Deduction (MID) for millions of American homeowners. The commission will vote on the recommendations Friday.

"Changes to the Mortgage Interest Deduction would seriously jeopardize the recovery of the housing market and the national economy and that's the price we as a nation cannot afford to pay," said Karl Lee, President of the Santa Clara County Association of REALTORS®. "Such a policy would cause home prices to drop, reduce the net worth of homeowners, and discourage potential buyers from buying at a critical time when the market is starting to show signs of recovery. The negative impact would reverberate across a wide spectrum of industries from banking to building. "

The MID has been a powerful incentive for buyers to purchase a home for almost 100 years. In a recent survey of 3,000 homeowners and renters, nearly three-fourths indicated that the MID was extremely or very important to them when they considered buying or renting.

The MID has been an integral component to the stability of the housing market and the economy. Research by the National Association of REALTORS® predicts as much as a 15 percent decline in home values if the MID is no longer available.

"We are calling upon Congress to keep the Mortgage Interest Deduction intact," Lee said. "Undermining it would be shortsighted for the long-term health of our economy."

SCCAOR President Karl Lee can be reached for comments at or 408.205.1726.

About the Santa Clara County Association of REALTORS®

SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent 7,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.

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Contact: Alison Martinsen

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SOURCE Santa Clara County Association of REALTORS