Tax Reform Debate Is Affecting Home Loan Rates

Home loan rates have dipped amid the national discussion of GOP-proposed tax plans.

The 30-year fixed-rate mortgage averaged 3.90 percent, down from 3.94 percent the previous week, reported Freddie Mac.The plan proposed by the Republican-controlled House of Representatives would widen the deficit by $1.7 trillion over a decade, the Congressional Budget Office said this week, Realtor.com reports.

Investors also worry that the kind of sweeping tax overhaul Republicans have envisioned would spur inflation, making bonds that have already been issued worth less.

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