Roughly 71% of voters support the mortgage interest deduction, and most of those also back tax breaks for HELOCs and second homes, according to a new study from the National Association of Home Builders.
NAHB noted that although 71% support the deduction, a lower figure, 63%, opposes efforts to reduce it.
The trade group’s research vendor, Lake Research Partners, surveyed 2,000 likely voters in early May, assessing their views on home ownership, tax policy on the MID, and related issues.
The White House and GOP have talked about reducing or eliminating the MID as a way to increase revenue paid to the U.S. Treasury.
In talking to voters, NAHB couched the MID issue in political terms, asking voters if they’d be willing to vote for a candidate who proposed eliminating the deduction.
The trade group noted that, “Even when told that getting rid of the mortgage interest deduction would help ease the federal budget deficit, 65 percent of voters opposed any proposal to abolish the housing tax provision,” said NAHB.
The group, whose members face bleak prospects the next two years, was told by likely voters that saving for a downpayment and closing costs “is the biggest barrier to homeownership.” Roughly 92% of those surveyed said raising downpayment requirements would make it more difficult to buy a home.
