House hunters are already combating low inventory, rising prices, and stiff competition from other buyers. A few more roadblocks could be coming their way.
CNBC reports that the government is considering to increase mortgage interest rates and reduce the cap on the mortgage interest tax deduction.
Interest rates are at historically low levels right now, and the mortgage interest tax deduction only affects a small portion of the population.
While this tax break only benefits 20 percent of taxpayers, it has always been very popular in the emotional rhetoric of the housing market and therefore politically untouchable.
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