Of the 237 readers who participated in our recent poll, 83% (196 voters) asserted mortgage interest deductions increase California home sales.
This belief comes from buyers’ ability to afford a larger purchase price due to the deduction (read: subsidy). However, a larger purchase price does not translate to more sales, merely higher-priced sales. Further, as commenters rightly pointed out, when buyers include their subsidy in their calculations they are in danger of buying more house than they can afford.
To cast your vote and read more about mortgage interest deductions see the May 2012 first tuesday article, Mortgage interest tax broken?
