Home Mortgage Interest Deduction reduction & affect on CA RE

[Nischal Belthangady]

With the proposed reduction of the Home Mortgage Interest Deduction to $500k in the GOP Tax plan, wondering what the affect will be on Real estate in States with High Home prices: CA, NY, NJ, HI etc. Appears that this would apply to only new purchases and not existing mortgages, which would get grandfathered.

Realtors associations and home builders have already come out against the reduction in the deduction limits.