Dec
03
Housing Is Safe From Washington
ByThe rally in homebuilders’ shares seems well-supported and may continue whatever happens to the mortgage interest deduction.
Deductibility of home mortgage interest is a hot potato in the current U.S. tax cut and reform debate. It always has been. In 1986, zealous reformers wanted to eliminate the deduction, but realtors and all their backers descended on Congress and the idea dropped dead.
But this time around, even if the impending tax changes become law, the measure is unlikely to have a meaningful effect on mortgage interest deductibility for most, or depress home prices or the booming housing market. Perhaps that’s why the surge in the share prices of homebuilders, with the S&P Homebuilding Select Industry Index up more than 16 percent since late August, seems well-supported and may continue…
