Matthew Speakman on what’s driving homebuyer demand

Zillow Economist Speakman explains what Zillow’s recent report on homebuyer demand tell us about the current state of the housing market.

Record low mortgage rates hold steady at 2.72%

This is the second week in a row rates have sat at the lowest recorded level in the survey’s near 50-year history.

What Yellen as Treasury Secretary would mean for housing

Experts weigh in on former Fed Chair’s possible impact on GSE reform and how she could jumpstart the economy.

Building the one-touch digital mortgage

As Katherine Campbell drives toward a one-touch mortgage, she’s taking time to share what she has learned along the way.

Mortgage

House passes sweeping tax reform, including slashing mortgage interest deduction

But will it survive through Senate?

The House of Representatives voted Thursday to approve the Republican tax reform plan, the Tax Cuts and Jobs Act, which is opposed by many in the housing industry.

The House passed the bill 227 to 205. While 13 Republicans voted against the bill, 227 voted for it; 192 Democrats voted against it, and none voted for it. Two Democrats did not vote.  

H.R. 1, which passed through the Ways and Means Committee last week, would slash the mortgage interest deduction in half from $1 million to $500,000. However, Speaker of the House Paul Ryan claims the bill would enable homeownership by giving a tax cut to most middle-income families.

Housing experts explained the House bill could cause inventory shortages in many cities and be especially hard on areas such as California where home prices are higher.

While organizations like National Association of Realtors are writing Congress to fight against this decrease in the MID, other organizations are taking a different approach.

Approximately 2,500 signers sent a letter to Congress, addressed to Ryan and Senate Majority leader Mitch McConnell, urging them to direct savings from the MID cut to rental housing programs that serve the lowest income families such as the national Housing Trust Fund or a renter’s tax credit.

The bill will now move to the Senate, however its future once there is uncertain. Senate Republicans recently unveiled their own bill for tax reform. Unlike the house bill, the Senate version keeps the mortgage interest deduction intact.

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please