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Here's a Way to Make Homes 10 Percent More Affordable

Eliminating the mortgage interest tax deduction would destroy 10 percent of home values, says one economist. Put another way: It would make them that much more affordable.
Just who is the mortgage interest tax deduction for?
Just who is the mortgage interest tax deduction for?John Gress/Reuters
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Here’s a way to bring down high housing prices by 10 percent nationwide: Eliminate the mortgage interest tax deduction.

Okay, that wasn’t exactly the point that Lawrence Yun was trying to make during a homeownership forum at the U.S. Department of Housing and Urban Development on Thursday. The chief economist for the National Association of Realtors, Yun came out strongly in favor of the mortgage interest deduction when a question touched on the subject. In fact, he said that eliminating the deduction would lead to “home value destruction of 10 percent.”