Zillow via Builder
The prime 30-year fixed mortgage rate quoted on Zillow dropped eight basis points over the past week, following House Republicans’ release of the tax reform bill. The 3.73% average is the lowest level reached since the end of September, according to Zillow data.
Of particular relevance to the mortgage market is the new proposed cap on mortgage interest deductions for existing and newly purchased homes, placed at $500,000. The bill put downward pressure on rates because an elimination or decrease of the interest deduction would make borrowing less attractive.