Mortgage Rates Lowest in a Week

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Posted To: Mortgage Rate Watch

Mortgage rates recovered even more of their recent losses today, following reports that lawmakers were considering “phasing in” a 20% corporate tax rate by 2022 as a part of the current tax reform efforts. The President’s previously announced tax reform principles call for 20% out of the gate. When those principles were initially released, stock prices and interest rates rose in unison. On one hand, lower taxes are seen stimulating the economy, which traditionally puts upward pressure on stocks and rates. On another note, some analysts think the tax plan would result in more government borrowing–something that hurts interest rates specifically because it creates more supply of the bonds that drive interest rate movement (higher supply = lower prices, and lower bond prices = higher rates)….(read more)

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