Realtors Lobby Against Changing Deduction

Washington, DC, Dec. 2, 2010 -- The National Association of Realtors has weighed in on the federal debt commission's proposal to scale back the long-standing mortgage interest tax deduction.

Not surprisingly, the group believes it's a bad idea.

“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy," the group said in a written statement on its website.

“The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them.

The trade association said the change could erode home prices and the value of homes by as much as 15%.