Several trade associations have sent letters to lawmakers and members of the Obama administration voicing their opposition to the administration's proposal to limit the income tax deductions available to homeowners.
The administration recommends limitations on all itemized deductions, including those for mortgage interest, mortgage insurance and real estate taxes.
"While the proposal purports to target only "the rich,' such a limitation would have a negative impact on all homeowners and would have a chilling effect on prospective home buyers," says the letter, dated March 11 and signed by the Mortgage Bankers Association, the Financial Services Roundtable, the National Association of Home Builders and the National Association of Realtors.
"[W]e believe that this transition proposal announces to all that appreciation in some categories of homes – and thus in all categories of homes – will be curtailed," the letter states. "Therefore, we believe that the Budget Proposal encourages ongoing instability in housing values."
The letter is available on the National Association of Realtors' Web site.
SOURCE: National Association of Realtors