So far, Congress is ignoring President Barack Obama's budget proposal to reduce deductions for mortgage interest and real-estate taxes.

The president proposed that taxpayers would save 28 cents of tax liability for every $1 of mortgage interest or taxes, down from the current 35 cents.

Congressional representatives on both sides of the aisle have concerns about how the idea would impact the housing market, says Matthew Beck, a spokesman for the Democratic majority on the House Ways and Means Committee.

The Joint Committee on Taxation says the current mortgage-related tax deductions will reduce tax revenue by $104 billion this year, with 75 percent of the benefit going to people who earn more than $100,000 per year.

Source: The Wall Street Journal, James R. Hagerty