A bill to amend the Internal Revenue Code of 1986 to increase the exclusion of gain from the sale of a principal residence, and for other purposes. This bill, the “More Homes on the Market Act,” aims to amend the Internal Revenue Code to increase the exclusion of gain from the sale of a principal residence. Specifically, it raises the exclusion amount from $250,000 to $500,000 for individual taxpayers and from $500,000 to $1,000,000 for married couples filing jointly. Additionally, the bill includes an inflation adjustment provision to ensure these amounts keep pace with the cost of living. The changes made by this bill would apply to sales and exchanges occurring after the date of the bill’s enactment.
Despite volatility in the markets, the 30-year fixed-rate mortgage remained essentially flat from last week. Mortgage rates continue to be relatively low versus the last few months, and homebuyers have responded. Purchase applications are up 5% as compared to a year ago. The combination of modestly lower mortgage rates and improving inventory is a positive sign for homebuyers in this critical spring homebuying season.
