Traders continue to drive stocks to new heights and new records. However, concerns over the new tax reform plan going through have started to surface. The tax reform plan is expected to drive economic growth and corporate profits. If the plan doesn’t go through as anticipated, it could help interest rates. The labor market remains strong. Job openings posted by employers in September were steady from the prior month, a near record high.
Rents have been increasing far faster than the pace of inflation. However, rising homeownership numbers could curb demand, slowing the increases. New applications for purchase mortgages increased 1% last week. That’s 9% higher year-over-year, as buyers seem less concerned about rates. The tax reform plan, as proposed, would lower the mortgage deduction on new purchases. There are lots of opinions of what effect, if any, it would have on sales.