Trump’s tax plan will lift home loan rates higher

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By Dan Scavino

White House Deputy Press Secretary

President Donald Trump’s call for tax reform in his tax reform address in Springfield, Missouri, Friday night will no doubt have an impact on home loan rates.

An unnamed Democrat in the House of Representatives asked Trump to expand on his remarks, and what he thinks of housing policy changes, an official told CNN. The House Democratic leader, Nancy Pelosi, then asked that a statement on housing be included in the floor speech as well.

Trump said his tax reform proposal “will provide for an immediate one-time payment on outstanding mortgages that are currently at artificially low rates, reduce the tax penalty” for Americans who make mortgage or home equity loans, and do “everything we can to give American families a tax break so they can buy that house or that car that they want, or the ranch house that they’ve always wanted, that’s affordable.”

The comments will no doubt help to drive interest rates higher. Mortgage buyer Freddie Mac said Friday that the average rate for the 30-year fixed rate mortgage rose to 3.90% this week from 3.77% a week earlier. A year ago, that rate was 3.44%.

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