Home Mortgage Interest Deduction: 2.3 Million Decline in Number of Filers, Amount Still Tops $470 Billion.

In looking at the new US 2012 US Statistical Abstract I noticed that the number of filers and the amount of the mortgage deduction claimed on federal returns had declined from 2007-2008.

I went back and pulled similar data for select years and prepared the tables HERE that show the number of filers who claimed the deduction, the total amount of the deduction, and the average amount per filer. (No inflation adjustments were made to these figures).

Observations: 

From 2000-2008 

1. The number of filers claiming the mortgage interest deduction increased by 3.77 million (10.8 %) to 38,684,000 filers.
2. The amount of the deduction claimed increased by $170.515 BILLION , (56.8%)  to $470.478 BILLION.
3. The average amount per filer increased by $3,571 (41.6%) to $12,162.

From 2007-2008

1. The number of filers claiming the mortgage interest deduction decreased by 2.093 million (5.1%).
2. The amount of the deduction claimed decreased by $20.954 BILLION (4.3%).
3. The average amount per filer still increased by $110 (.9%).

Notes: 

1. The reduction in filers and the amount from 2007-2008 is likely the result a reduction in the number of homeowners; a drop in income that reduced/eliminated the value of the home mortgage deduction for households who remained as homeowners; AND perhaps a decline in the total mortgage interest paid because of refinancing. 
2. The Fall 2011 IRS SOI publication will have 2009 filing data. I would expect to see a further erosion in the number of filers claiming the home mortgage deduction and the total amount of that deduction. 

Originally created and posted on the Oregon Housing Blog.