The U.S. economy is setting a record in 1999 that most people would prefer to avoid. The amount of taxes paid by individuals in relation to the economy will exceed that paid in every year of the 20th century except 1944, the peak year of World War II taxation.
Busting the budget caps would send a signal to the financial markets that Congress isn’t serious about fiscal discipline. That would send bond prices dropping and interest rates rising. Real estate activity would be choked off.
Learn what James F. Smith, the new chief economist for the NATIONAL ASSOCIATION OF REALTORS®, is saying. As one of the country’s most accurate economic forecasters, Smith doesn’t have to fight for the ear of the country’s top policy makers and opinion leaders. He has it.
Low interest rates are here to stay. That will sustain the real estate sector, which will in turn keep the economy growing. Lower rates will increase the demand for housing and make commercial deals more attractive. Yet, there are still worries.
If the economists are correct, real estate practitioners can look forward to a strong housing market through the turn of the century. With moderate interest rates predicted along with steady economic growth and low inflation, first-time homebuyers and move-up purchasers will spur a generous amount of activity from 1997 through the year 2000.
Employment statistics will shape home sales in your area, according to John A. Tuccillo, chief economist for the NATIONAL ASSOCIATION OF REALTORS®. When Tuccillo looks into his crystal ball, he sees a fairly strong housing market for the first and second quarters of 1997.
Fifty percent of Americans who responded to a recent Associated Press poll said they oppose a flat tax that would "take away all or most deductions, including the home mortgage interest deduction," lending support to NAR's position that the benefits of a pure flat tax aren't worth the loss of the mortgage interest deduction.