Journal Article

Mortgage interest deductibility and housing prices


Abstract: An analysis of how implementing a flat tax on income and ending the deductibility of mortgage interest payments would affect housing prices. The authors show that, to the extent prices decline, higher-income households would bear most of the impact, but increases in the value of their other assets might mitigate the drop in the price of their homes.

Keywords: Mortgages; Housing;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1996

Issue: Feb

Order Number: 1