"Higher mortgage rates continue to shut down refinance activity, as the pool of borrowers who can benefit from a refinance further shrinks," said Joel Kan, an MBA economist.
Mortgage applications to purchase a home fell 2% for the week but were 39% higher than a year ago. That large and seemingly strong annual comparison, however, is due to the fact that the entire housing market basically stalled when the pandemic hit a year ago. It then came roaring back just a few months later. The weekly drop is likely more indicative of what's happening now with homebuyers.
"Many prospective homebuyers this spring are feeling the effects of higher rates and rapidly accelerating home prices," said Kan. "Record-low inventory is pushing home-price growth at double the rate from a year ago, and even above the 10% growth rates seen in 2005. The housing market is in desperate need of more inventory to cool price growth and preserve affordability."
Mortgage rates started this week on the upswing yet again. Some believe higher rates will help to cool the growth in home prices because potential buyers will simply be sidelined. Demand, however, does not appear to be abating, and the inventory situation is not easing at all, even with the onset of the popular spring season.
wait, does that mean poor people got better rates on home loans so they aren't kept down by high made up rates i mean high rates based on a stable free market?
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Mortgage rates drop to lowest level since mid-February, but economists warn higher rates could come soonHome buyers continue to pour into the real-estate market, encouraged by the favorable financing they can score. Is it possible to find a good guy on Twitter?
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Biden will unveil eye-popping new tax rates for wealthiest AmericansPresident Biden in the next few days will unveil eye-popping new tax rates for the wealthiest Americans —a top marginal income tax rate of 39.6% and a capital gains rate of 43.4%.Why it matters: The proposal, to be announced ahead of Biden's address to Congress next Wednesday, is an opening bid for Hill negotiations.Get market news worthy of your time with Axios Markets. Subscribe for free.'For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%,' Bloomberg News reported.The Dow closed down more than 300 points after the plans leaked.Practically and politically, the White House needs buy-in from Congress to pay for social spending in the next phase of his plan to reshape the American economy, the American Families Plan.Between the lines: Democrats close to the White House believe that the amount of revenue that the IRS can collect on capital gains actually decreases past a certain point, probably in the low 30% range. That means the ultimate capital gains rate could be well below 43.4%Officials haven't yet made clear whether the capital gains rate would apply in 2022 — or in 2021, which would allow the IRS to harness some of this year's massive equities earnings.Goldman Sachs sent out a research note last evening entitled, “No Surprises in President Biden’s Reported Capital Gains Proposal.': 'We expect Congress will pass a scaled back version of this tax increase.' What we're watching: Biden also is likely to raise more revenue from the wealthy by making changes to estate taxes.Biden wants to change the so-called 'stepped up basis' for accounting purposes, and value assets when they are passed on to an heir, not at their original cost.The White House thinks that change could lead more individuals to liquidate assets before they die, allowing the IRS to tax them then instead of encouraging families to keep passing on them for more favorable tax treatment. Editor's note: This story has been cor Doesn’t mean shit without closing the loopholes. If the IRS would just enforce existing rates we would be fine. Still have to increase the SS tax cap and trim the fat on defense spending. Change the Medicare Part D drug pricing act and maybe you can balance the budget. the money maker Goodbye jobs for the middle and lower class
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