Regardless of the specifics of any new legislation, the
implication for the housing market largely comes down to simple math: Additional people mean additional housing demand.
Inventory is a
key for the housing market, and I will be watching inventory for the impact of the new tax law and higher mortgage rates on housing.
Rising mortgage rates, bigger jumps in home prices and still - moderate income growth are adding up to a triple
threat for the housing market this spring.
Mortgage expert and President of NAMB (The Association or Mortgage Professionals), Don Frommeyer, CRMS, says, «The slow season is coming at a difficult time
for the housing market as we were really starting to see housing starts jump and builder confidence grow.
The spring buying season appears to have given consumers a boost in sentiment that now is a good time for the housing market
«The fact that over 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news, and representative of the generally brightening outlook
for housing markets nationwide,» said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. «That said, our industry's progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development.»
In another positive
sign for the housing market, the nation's so - called shadow inventory of properties in the foreclosure pipeline fell by more than 10 percent in July from the same period a year before reported CoreLogic.
As the reforms gather steam, a particular point of
interest for the housing market is the impact of the proposed new legislation on the mortgage interest deduction (MID), which allows homeowners to claim a tax deduction equal to the amount of interest they paid on their home loan.