There are many things that can affect the home purchasing decision. The overall wealth of the economy is the biggest contributing factor when it comes to purchasing a home. Lack of attention to Gross Domestic Product can cause you to fall into a bad situation. It is important to understand how the economy is doing before you purchase a home due to the fact that you can over pay, which can cause you a financial disaster. The GDP is an indicator that shows you how well or poor the economy is doing. If the economy is rising to quickly, this can a home to be over an affordability rate due to inflation. An economy growing to quickly can be a negative affect in the real estate business, as home purchasing will have a dramatic decrease due to an over priced market. If the economy is down, this would cause homes to be valued a lot lower. The government has offered a tax break on mortgage interest paid by home owners annually. This tax break gives consumers the incentive to purchase a home based on this tax break. The home owner can use the home as a tax write off, and ultimately save money. The owner can also use this purchase as an investment and potentially make a profit over time as property value increases. The changes in government spending and taxes affect the decision to purchase a home due to the fact that one must consider future income. Although tax breaks are great for new owners, not earning sufficient income and being able to pay bills due to increase of taxes or