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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Live2Sail who wrote (56121)	6/15/2006 11:21:40 AM
From: ChanceIs	Respond to of 306849

>>>people are turning over their houses and refinancing frequently, so they benefit from that mortgage deduction at the cost of never coming close to owning their home.<<< A very good point. You left off the ATM machine aspect. Not what the government intended. Which is not to be construed by an admission on my part that the government was ever authorized to enact things like the mortgage interest deduction, or even it is was authorized, that it is a competent decision maker.

To: Live2Sail who wrote (56121)	6/15/2006 11:26:45 AM
From: GraceZ	Read Replies (3) \| Respond to of 306849

As of 2004 70 million households in the US had no housing expense what-so-ever. This includes about 15 million or so that either get a house as part of their employment compensation and those who live in 100% subsidized housing. So that means that around 55 million or so out of the approximately 120 million US households own their house outright. Now we have a 67% ownership rate for households, that means 80 million household own, so if 55 million own outright, that is the majority of households. The majority of US households have zero mortgage interest deduction. Another 20% are like me, they've owned their house long enough that interest is half or less of their monthly mortgage payment soon to be zero. Almost all the mortgage interest and the consequent deduction is concentrated in a small number of households on either coast who have taken serial home buying and borrowing to a new level.