2011 Housing Opportunity Pulse Survey by NAR

Survey Shows Opposition to Down Payment Requirements and Elimination of Mortgage Interest Deduction

A Survey from NAR’s (National Association of Realtors) ninth housing survey shows American’s worry policies being proposed out of Washington could further drag the market down or negatively affect new homeowners. Most of the concern is focused around a required 20 percent down payment on a home purchase. Here are the results from the survey:

·         Seven out of ten Americans think a required down payment of 20 percent would have a negative impact on the market.

·         There is strong concern regarding the possible elimination of home mortgage interest deduction

·         Two out of Three Americans (67%) eliminating the mortgage interest deduction

·         51% of Americans are strongly opposed to eliminating it

·         61% of Americans believe layoffs and unemployment are a huge problem in their area which eight out of ten believe homeownership to be a barrier

·         77% of renters said they are less likely to buy a home if a 20% down payment were required while 39% say they would not have been able to purchase their current home if the 20% were a requirement at their time of purchase

·         82% consider a 20% down payment and closing costs to be a “huge” or “medium” sized obstacle

·         73% of Americans believe eliminating the home mortgage deduction would negatively affect the housing market

·         65% believe the elimination of the home mortgage deduction would have a negative impact on our overall economy

·         72% of Americans still agree buying a new home is a good decision financially.

·         64% say now is a good time to buy a home

Economic benefits, stability and safety are the top benefits to why Americans believe it is still important to own a home.

For more information CLICK HERE to read more on the survey.