Stay up-to-date on this week’s housing news!
How will the GOP Tax Plan Change the Housing Market?
Last week the GOP announced the outline of their new tax plan. Here’s what you need to know:
- Although opinions of industry groups differ, they can all agree this plan will change the market.
- The National Association of Realtors stated that this plan could lead to a tax on home ownership, removing incentives to purchase a home.
- However, the National Association of Home Builders approves of the plan. They believe this new plan will reduce taxes on small businesses, meaning an increase in the economy’s growth and accessibility of home ownership.
Who will be the new Chairman of the FED?
Later this year President Trump will appoint (confirmed by the Senate) a new Chairman of the FED whose term will start in February 2018. Here are a few of the candidates:
- Jerome Powell, FED Governor – “I think we need to be doing those things that support higher growth — stronger workforce, higher productivity, balanced regulation.”
- Kevin Warsh, former FED Governor – In the past, Warsh has discussed his concerns with inflation and job growth.
- Janet Yellen, current FED Chairman – First-term presidents typically keep the acting chair on for stability. Trump had this to say, “I like her and I respect her, but I haven’t made that decision yet.”
- Gary D. Cohn, president’s chief economic adviser – Currently Cohn is the head of the National Economic Council and has stayed pretty quiet about his thoughts on being FED Chairman.
Mortgage Rates Trend Higher
On Monday, October 2nd multiple benchmark mortgage rates climbed.
- Average rates on 30-year and 15-year fixed mortgages both trended upward.
- Rates are still low, meaning those in the market may want to lock in a rate now.