Mortgage interest and local property taxes are deductible on federal tax returns. While the most basic indicators look good, there are some factors that could hurt realty interests. Troubled Asian economies are a two-fold problem. If the economies get better, money will move East from the U.S. meaning that mortgage rates may stiffen. Falling oil prices have been a major benefit for the U.S. economy.
Fewer dollars spent on imported oil means lower heating bills and more money to buy other things.
But, instability in the Middle East or effective market management by OPEC could raise fuel costs and harm U.S. interests. The business community detests instability and few things are less stable than the Russian economy. Continued instability in Russia makes lots of people nervous, not good news for stock markets or neighbors. Political unrest, falling oil prices, and one-party political domination are an explosive combination now smoldering south of our border. Disputes concerning a more equitable distribution of national wealth and political power will inevitably happen.