Zillow Advice: Taxes - How would proposed Tax changes effect property values? http://www.zillow.com/advice-thread/How-would-proposed-Tax-changes-effect-property-values/508672/ Zillow Advice | Zillow Real Estate It might reduce the amount ... http://www.zillow.com/advice-thread/How-would-proposed-Tax-changes-effect-property-values/508672/ It might reduce the amount that people are willing to pay on a monthly basis for housing. Housing would not collapse if the deduction was taken off the table, but prices might drop so that housing cost without the deduction were closer to rent.<br/><br/>Honestly, people should be more keyed on the revisions that have been discussed with FHA, Freddie and Fannie. If the government stops their encouragement in interest rates or govt backing, mortgage costs are likely to rise and that will put downward pressure on housing prices and bring tougher lending guidelines with higher rates. Mon, 26 Aug 2013 22:54:00 GMT http://www.zillow.com/advice-thread/How-would-proposed-Tax-changes-effect-property-values/508672/ 2013-08-26T22:54:00Z