This was an important week for the housing industry. Read on to catch the highlights:
The White House’s Tax Plan and the Housing Market
The cost of owning a home could increase if this new tax plan called, Tax Cuts and Jobs Act, takes effect. Here are details you need to know:
- The after-tax cost of homes will increase due to loss of deducting property taxes and mortgage-related tax savings.
- This plan is good news for rental property owners, as they will still be able to deduct both state and local property taxes.
- Home-builder stocks fell Thursday morning on November 2nd after Republicans introduced their tax bill which changes the current seven tax brackets to just three.
Mortgage Rates Steady, Could Move Higher
Mortgage rates remained steady this past week but may increase over the next few months.
- Economists predict that the Fed will raise rates during their December meeting.
- However, the Fed’s upcoming change in leadership (Jerome Powell has been nominated by the POTUS to replace Chair Janet Yellen) may cause a delay of the increase.
- Now is the time for borrowers to lock in rates, as they remain at historical lows.
Daily Mortgage Rates
- Mortgage rates remained steady, with a slight drop overall.
- 30-year fixed rates reflected the biggest change, showing 83% last week to now 3.72%.