Hidden in the $900 billion tax cut for the rich is a tax hike on middle class mortgage holders and prospective home buyers. The latter group consists of the vast majority of the Millennial that supported Obama by a 66-33 margin for his election.
What is this tax hike?
Well, recently jerome a paris had an excellent diary noting that the bond markets were not particularly thrilled about the Obama/McConnell plan:
The yield on 10-year Treasuries – the benchmark price of money worldwide and the key driver of US mortgages rates – has rocketed to 3.3pc, up 35 basis points since President Barack Obama agreed on Monday to compromise with Senate Republicans on tax cuts. (...)
In other words, bond vigilantes are telling us that they don't want tax cuts for the rich. Just sayin.
But picking off where jerome a paris left off, it appears that mortgage rates have indeed surged since Monday .