Case-Shiller Index co-author Robert Shiller spoke with FOX Business Network (FBN) about his concerns surrounding homeownership. Shiller said he thinks the mortgage interest deduction “looks vulnerable,” and might be rescinded for the “higher income people or higher priced homes” bracket. When asked what raising the tax revenue would do to home prices, Shiller said, “a lot of people don’t even take the deduction, so it’s not as big as you might think,” however, “it would be a hit on the housing market.”
Excerpts from the interview are below:
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On whether Shiller expects us to rescind the mortgage interest deduction in the near term:
“Well, I don’t know about the near term, but it looks vulnerable to me, at least for higher income people or higher priced homes – they’re going to be looking everywhere to raise tax revenue and that seems to me like a likely place.”
On what raising the tax revenue would do to home prices:
“Well, a lot of people don’t even take the deductions, so it’s not as big as you might think, but it would be a hit on the housing market – how could it not be, it’s taking money out on people who invest in homes.”
