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Tuesday, March 3, 2009
NAR opposes Obama's budget proposal
Obama's budget proposal released last Friday would reduce the amount of mortgage interest that is tax deductible for families earning more than $250,000 per year. The National Association of Realtors believes that "this proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved." The NAR has expressed its concerns to President Obama and Congress.
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