Home › Forums › Housing › Ax may fall on tax break for mortgages › This is an increase in the
This is an increase in the effective interest rate paid by any homeowner, which would directly put downward pressure on all residential real-estate.
Homeowners take a double-hit. They have to pay more interest going forward, AND their property values would drop.
Not only would millions of homeowners rally against this, they would be backed by the entire real-estate community, and, of course, banks.
Lower property values and higher interest rates would be a nightmare for the banks, especially those “on the edge”.
Even if you ignore the homeowner backlash, I don’t see Congress doing anything to hurt the banks.
