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Our next guest is part of that industry says.
In a certain way both color trimming it would just not only avoid deep drilling the recovery but a slight modification on the other hand could be all we need for healthy housing market and an economic bill much.
Joining us about very happy MVS highway founder and CEO of everybody I talk to says.
-- in this business as they love to read your newsletters and listen to what you have to say but.
-- Quite idea can't believe you're even saying this year saying to trim the mortgage interest -- deduction.
Who would wanna keep it okay obviously wanna keep it but we have to try and see the future report becomes obvious right.
The mortgage deduction cross the government -- hundred billion dollars a year.
Only 26% of individuals take the deduction -- have to think that.
In Washington people are talking about we know they're talking about it -- rather than say some these foolish ideas trim it to 500000.
That's foolish only about 12% of mortgages are over 500000 -- anyway right right.
Happened to fix it so -- that making this like the gift that keeps giving look it's an incentive to buy a home.
And it creates 20% of GDP is housing activity -- have -- let me just interrupt people say if you get rid of that -- guilty -- the whole housing market so what if you will hurt so the plan is just get a five year life.
So -- five years from today it's from whenever you take out of purchase mortgage.
Take the deduction for the first five years and that helps with the incentive that you've got to purchase a home.
But is that -- been making it the gift that keeps giving and having the benefit over you don't outlast the incentive.
After five years you don't get the deduction anymore but think about it he will give you an incentive to purchase a new home create more economic activity.
And we paid -- yourself than a quarter with these low rates.
-- why won't let me back up so you buy a home -- get the deduction for five years -- think -- really -- -- -- over -- -- -- -- second home.
All get a new deduction for bring you five years exactly how does the government went simply by people stimulating the housing mark.
They get the benefit of the economic activity and they also don't have this long term deduction that they've given for someone who stays in that home for let's just say.
25 years and gets at the -- every year.
Let me play the devil's advocate odd odd year industry's side it'll cause a housing slump if you eliminate the gift that keeps them get.
I'm glad Jack -- you ask that because it actually does the opposite in my opinion because if you think about we've painted ourselves in the corner here we are three and a half 4% interest rates.
What's gonna happen we know interest rates are gonna go eventually when rates -- six or 7% still good but would someone.
Hesitate to purchase a home I don't give up my three and -- half percent mortgage and now take out one for seven if you say wait a minute.
I do have a three and a half percent mortgage but that mortgage at six or seven after my tax deduction feels like 44 and a half it's less of -- bridge.
-- how do we implement this how do we say that the lobbyists backed off.
This is what it's going to become five years Don somebody -- to compromise here.
Well everybody wants to did not in my backyard right so if this -- be part of a grand plan it has to be part of a total revenue package and and total expense cutting package right.
But if we're able to accomplish that.
That I think the implementation is relatively easy -- first thing I'd rather keep the mortgage deduction I think we all would because we can see tangible benefit but if only if they are going to tinker with -- don't eliminated look for ways to generate revenue generate activity through that economic revenue and still give people benefit especially the first time home buyer.
-- they always say that a solution that.
Gets everybody upset is the best solution -- totally -- nor the mortgage industry it would -- homeowners who wanted to it would nor the government because they wanted to eliminate its at this what may -- it's an idea.
I think your prediction on mortgage rates coming up mean they've been historically low.
They've already started to move up quite a bit in the past 045 months of predominately due to the stock market's run maybe stocks pull back a little bit.
Mortgage rates improve.
But I do think stocks are -- our disposal trouble from where retreats for a quarter percent -- on the far right of the screen here are starting to tick up yet for a quarter percent by the end of the year four and a half percent what -- -- causality people.
Refinance now there's a great time to refinance and you know home affordability statistically speaking.
Never been better than it is now home prices are gonna continue for the next three or four years give people the mortgage rate deduction but chop it off after five years says very happy you know thank you thank you very happy superstar David we love -- -- -- a -- we we need.
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