Home Prices hit new highs in February, Mortgage rates continued to improve in latest week, Largest Tax Cut in history
April 26, 2017
Home prices hit new highs in February fueled by an improving job market and low inventories of homes for sale across the nation. Black Knight Financial Services reported this week that home prices were up 0.8% in February from January to $268,000 from $266,000. From February 2016 to February 2017, prices increased 5.7% from $254,000. Texas and New York hit fresh price peaks, while California and Florida lag behind.
Mortgage rates continued to improve in the latest week and have fallen to lows not seen since November 2016. The Mortgage Bankers Association reported that the 30-year fixed conforming mortgage rate ($424,100 or less) fell to 4.20% from 4.22%. The report went on to reveal that the refinance index jumped 7%, while the purchase index declined 1%. In addition,
the 30-year fixed-rate mortgages with jumbo loan balances remained unchanged from 4.15%, while the 30-year fixed-rate mortgages backed by the FHA decreased to 4.03% from 4.09%.
The White House is expected to unveil the largest tax cut in history today with the corporate tax rate decreasing to 15% from 35%, which would include millions of small businesses. Treasury Secretary Mnuchin said on Wednesday morning that the administration wants to simplify the tax code for the average American and create economic growth. The goal is to achieve 3% economic growth through tax reforms and reduced regulations.