Chart: May Existing Home Sales

Goodmorning Brian: First, thank God for Fox and Rupert: Now, this morning you were doing a bit on new home sales,mortgage rates yadada<. Your missing a crucial element relating to mortgage rates VS. home prices. We will not see a turn in home sales until the American people understand the tax code as it relates to home buying. And the surplus homes are out of the system, one way or the other,.. I just got back from a 2500 mile trip , thru, AZ,UT,ID,MT,WY. There are new homes sitting around empty everywhere. And Prices were advertised on billboards from $149,K to $199K. In short, the higher the rate%, the lower the cost of the home. Mr. Lieberman went there this morning, but he failed to explain that the higher the rate, those interest dollars are a tax deduction on the 1040,. You can not depreciate residential property. So if you want to lower your monthy costs for residential housing, == Raise the interest rate, write that rate off against income, and reduce your tax liability by sheltering your income . The reason the FED wants to keep interest rates low is a lie: They say they are trying to encourage buying. Wrong, they know that the higher the rate, the fewer dollars will be coming into the Treasury at tax time. As a investor in commercial property and having owned several personal homes,.. If people want to improve their net worth , they need the rate deduction, and a lower capital outlay. I learned this lesson in the 80's during the RTC ,