Tax

The busy legislative agenda laid out by President Trump in the State of the Union speech Tuesday night casts doubt on how quickly Congress can move on financial services legislation, particularly a housing finance reform package.

A larger standard deduction could help renters become homeowners faster, and builders' lower taxes could expand inventory that competes with single-family rentals, according to Fannie Mae Chief Economist Doug Duncan.

Flagstar Bancorp swung to a fourth-quarter loss as the company took an $80 million noncash charge to earnings because of the tax reform bill.

Home remodeling activity reached a high not seen since 2001, signaling homeowners are either gearing up to sell their properties or committing to staying put for a bit longer.

The changes created by tax reform will be a mixed influence on housing as consumers will have more to spend to buy a property, but lose other benefits of homeownership.

In the nation's hottest housing markets, inventory shortage has reached crisis levels, according to Zillow.

The new tax law helped boost fourth-quarter results at SunTrust Banks in Atlanta, while the recent rate hikes led to gains in spread income.

The percentage of refinances grew to 40% of all closed loans in December, according to Ellie Mae.

Though multifamily housing starts are projected to slightly moderate this year and next, production levels are expected to remain in a steady range considered normal, according to the National Association of Home Builders.

The new cap on the mortgage interest deduction should help the first time home buyer market by forcing sellers to lower prices, at least in the near term.