by: Jayson Derrick, Benzinga Staff Writer
Homebuilder stocks came under heavy selling pressure on Thursday as new details of President Trump's tax reform plan were released.
Under a revised Republican tax plan, the cap on mortgage-interest deductions would be moved from $1 million currently to just $500,000. The change wouldn't apply to already existing mortgages, The Washington Post reported.
The revision could have an outsized impact in high cost cities, such as New York, Boston, San Francisco, and others, the report said. But housing groups and lawmakers will likely be looking to defeat the proposition. The proposals would also allow people to deduct their local property taxes from their taxable income but any benefit would be limited to $10,000.
Here's how major homebuilder stocks were performing Thursday morning in reaction to the news.
- M.D.C. Holdings, Inc. MDC: down 7.43 percent at $34.52.
- Toll Brothers Inc TOL: down 6.11 percent at $43.78.
- KB Home KBH: down 3.67 percent at $26.53.
- Lennar Corporation LEN: down 3.11 percent at $55.19.
- CalAtlantic Group Inc CAA: down 3.12 percent at $48.73.
- PulteGroup, Inc. PHM: down 2.43 percent at $29.67.
- D. R. Horton Inc DHI: down 1.36 percent at $44.12.
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