Economics
Homebuying Doesn’t Hinge on the Mortgage Tax Break
- Economists say interest deduction doesn’t boost homeownership
- Republican tax bill would diminish the housing perk’s use
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One of America’s most popular tax breaks is about to be rendered nearly useless. And there are few economists rushing to defend it.
The $64 billion mortgage-interest deduction has long been touted as fuel for U.S. homeownership. Yet as the real estate industry fights the Republican tax plan that’s set to diminish its use, finding economic supporters of the perk is tough, even among affordable-housing advocates. John Weicher, a 79-year-old former official with the Department of Housing and Urban Development, says he’s one of the few who believes in the break.