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Are You Saving Up To Buy a Home? Your Tax Refund Can Help

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You’ve been working on your savings and dreaming of that moment when you finally have keys to a place that’s truly yours. What you might not realize is that your tax return could give you a little extra cash to help you get there sooner.

As Freddie Mac notes:

“ . . . your tax refund from the IRS can be a useful supplement to your homebuying budget.”

So, if you’re getting a tax refund this year, you can use it to help you pay for some of the upfront costs that come with buying a home, like the down payment and closing costs. And here’s the best part.

On average, people are getting even more money back in their refunds than they did last year. While it’s not a big increase, the visual below uses data from the Internal Revenue Service (IRS) to show the average individual’s refund is 3.9% higher this year:

 
 

Of course, how much money you may get in your tax refund is going to vary. But when it comes to buying a home, any extra cash can help move things forward. Here are a few examples of how you can put that money to good use, according to Freddie Mac:

  • Save for a down payment – Saving for a down payment can be one of the biggest hurdles for buyers. Setting aside your tax refund for this expense could help you get to your goal faster. Just remember, it’s typically not required to put 20% down.

  • Pay for closing costs – Closing costs include fees for things like the appraisal, title insurance, and underwriting of your loan. They’re generally between 2% and 5% of the total purchase price of the home. So, putting your refund toward these costs can make things more manageable on closing day.

  • Lower your mortgage rate – Your lender might give you the option to buy down your mortgage rate. If you qualify for this option, you could pay up front to have a lower rate on your mortgage. If affordability is tight for you at today’s rates and home prices, this may be worth exploring.

But you don’t have to figure it all out on your own. Working with a team of trusted real estate professionals who understand the homebuying process, what you need to save, and any resources you can tap into will help you make sure you’re ready to buy when the time comes.

Bottom Line

When it comes to saving for a home, every dollar gets you one step closer to your goal. While your tax refund may not be enough to change the game, it can help give your homebuying fund a boost.

Read more at Keeping Current Matters

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House introduces bill to reduce mortgage insurance costs

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Trade groups like the Mortgage Bankers Association (MBA) may be getting at least some of the relief they’ve been advocating for when it comes to mortgage insurance premiums.

Last week, H.R. 2760 — otherwise known as the Middle Class Mortgage Insurance Premium Act — was introduced into the House of Representatives by Rep. Vern Buchanan (R-Fla.). The bill has 10 co-sponsors, including three Republicans and seven Democrats.

The bill was referred to the House Committee on Ways and Means. While the full text of the legislation is not yet available, its listed purpose is to “amend the Internal Revenue Code of 1986 to increase the income cap for and make permanent the mortgage insurance premium deduction.”

“With housing prices skyrocketing in Florida and across the country, it’s our responsibility to provide tax relief for middle-class families seeking to own a home,” Buchanan, the vice chairman of the ways and means committee, said in a statement. “My bipartisan legislation will help make the American Dream of home ownership real for millions of Americans.”

“The costs of mortgage insurance can make buying a home that much more difficult for working families,” said Jimmy Panetta (D-Calif), a co-sponsor. “Our bill would make the mortgage insurance premium tax deduction permanent and update the income threshold so more middle-class homeowners can benefit.

“Despite today’s challenging housing market, this type of fix to modernize this tax provision would help more Americans achieve and sustain home ownership.”

The MBA has been a vocal advocate for any moves to reduce mortgage insurance premiums — especially for Federal Housing Administration (FHA) loans.

The Trump administration issued a day-one executive order that called upon the heads of all executive departments and agencies “to deliver emergency price relief, consistent with applicable law, to the American people” in an effort to improve the nation’s housing supply and affordability challenges. The MBA followed by renewing its efforts to seek reductions in mortgage insurance premiums.

“The general deregulatory bent of the new administration, we think, will be very helpful in bringing down some costs in the origination process. Over the next months and years of this administration, we expect an easing of the regulatory burden,” Bob Broeksmit, the MBA’s president and CEO, said on a recent episode of the HousingWire Daily podcast.

“Even more immediately, though, we believe the administration could very quickly make good on this pledge, this commitment to lower costs in housing, by taking a very serious look at the mortgage insurance premium for FHA loans, both on the single-family side and the multifamily side for affordable apartments and affordable rentals,” he added.

Seth Appleton, the president of the U.S. Mortgage Insurers (USMI), said that his organization “strongly supports” H.R. 2760. In a statement, he called it “common-sense legislation that would restore, make permanent, and expand eligibility for the tax deduction for mortgage insurance (MI) premiums.”

“From 2007 until its expiration in tax year 2021, the MI premium deduction was claimed 44.5 million times, representing a combined $64.7 billion in deductions for hardworking homeowners — an average annual deduction of $1,454 per qualified taxpayer,” Appleton said.

“Unfortunately, its expiration has deprived millions of low- and moderate-income taxpayers from benefitting from this deduction in recent years. The Middle Class Mortgage Insurance Premium Act is a positive step towards putting money back in the pockets of taxpayers and making homeownership more affordable for American families.”

Read more at Housingwire

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Zillow to ban privately marketed homes, escalating an industry fight over secret listings

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Home listings giant Zillow said it will ban homes initially marketed only to select buyers from appearing on its website, the latest twist in a long-simmering fight in the real estate industry over private listings.

“If a listing is marketed directly to consumers without being listed on the MLS and made widely available where buyers search for homes, it will not be published on Zillow,” the company said on its website Thursday.

Zillow’s decision comes after the National Association of Realtors announced a new rule meant to settle an industry fight over a policy designed to reduce semi-secret listings known as “pocket” or “off-market” listings. That rule gives sellers the option to delay broadly advertising their homes online while leaving in place a policy that requires agents to list homes on shared databases known as multiple listing services (MLS) within a day of beginning public marketing.

Zillow’s rules, set to take effect next month, would target homes that received limited public marketing like Instagram posts or exclusive inventory status on a single brokerage’s website without appearing on the MLS. Those properties would be banned from later being posted on its website “for the life of the listing,” the company said in a separate statement.

The MLS listing requirement, known as the Clear Cooperation Policy, has long sparked fierce debate within the real estate industry. Fair housing advocates and platforms like Zillow (Z) and Redfin (RDFN) have supported the policy, saying it aids transparency and helps sellers get higher prices for their homes. But other agents and brokerage executives oppose the strict listing requirement, arguing it limits seller choice.

Most home sellers want to market their homes to the widest possible pool of potential buyers. But a small proportion of sellers, particularly in luxury markets, seek off-market listings to maintain privacy or test their listing prices without having information on price cuts or time on the market visible to all.

Compass, a brokerage that touts its access to off-market listings and whose CEO, Robert Reffkin, opposed Clear Cooperation, advises sellers to consider a “3 Phased Marketing Strategy” that first makes a property available only to Compass agents, then publicly displays it on Compass’s website as a “Coming Soon” property, and finally launches the property on the MLS and third-party listings services.

Under Zillow’s new rules, a property that receives any prolonged marketing to consumers without MLS distribution wouldn’t be eligible to be listed on the site.

Read more at Yahoo Finance

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Eggs too expensive? Here are some Easter alternatives

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Dyeing eggs is a colorful Easter tradition. While the wholesale prices for eggs may be starting to fall after months of skyrocketing, according to data from the United States Department of Agriculture, they're still about 60% higher than a year ago.

As the holiday approaches, the crafting community is highlighting creative alternatives to the standard raw materials.

"I just thought, 'who's gonna wanna waste eggs on dyeing this year?' " said Jennifer Needham, who runs the children's party planning website "The Party Teacher" where she recently published a blogpost about egg dyeing. "You still wanna have the tradition with your kids, but it's just gotten too expensive."

Marshmallows — not just for 'smores

Rachel Anderson of the social media account Created at Home, posted a TikTok video about dyeing marshmallows for Easter.

"Since egg prices have gone up tremendously, I found a fun (and way cheaper) alternative!" Anderson wrote on her post, which has received over 50,000 likes.

"All you need is a package of jumbo marshmallows and food coloring. Mix the food coloring with cold water and place the marshmallow in it for only one to two seconds. I actually enjoyed dyeing marshmallows more than eggs."

Potatoes — the small ones are the perfect size

Crafters are also getting creative this Easter with the humble spud.

"Skip the expensive price of eggs this year and try dyed potatoes for Easter eggs instead!" exclaims an article on the "Rose Bakes" website. "With just two ingredients and minimal prep, having potatoes instead of eggs for Easter means buying fewer expensive eggs and having lots of fun with the whole family painting potatoes."

The article goes on to explain how small or baby potatoes are ideal, because they are close to egg-sized, and they can be used raw. No need to cook or bake them.

Other crafters are also showing off the technique, such as in this Facebook video by the digital creator team Liz & Jeff.

Plastic and wood — the highs and lows of experimenting 

Needham of The Party Teacher site said she has been experimenting this year with plastic and wooden eggs — sometimes known as "craft eggs."

Indeed, the craft company Michaels said demand is up for its craft egg kits this year.

"Craft egg kits are always an Easter favorite at Michaels," said Melissa Mills, the chain's senior vice president and general merchandising manager. "However, this year we're seeing strong demand much earlier than usual, suggesting more customers are seeking creative egg alternatives."

Needham said plastic versions are cheap, but unfortunately they do not hold dye. The upside is they can be decorated in all sorts of other ways: " I did decoupage with any number of things. I used tissue paper. I used fabric scraps. I used cutouts from napkins that had cute little bunnies on them," she said.

As for wooden eggs, they dye well, especially if they have a matte finish. However, wooden eggs tend to be more expensive than standard edible ones. They do have the advantage of longevity, though.

" So if your child created a precious egg that you wanna keep forever, you can do that with a wood egg," Needham said.

Read more at NPR

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Weekly mortgage demand jumped 20% last week, as tariff volatility briefly tanked rates

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Volatility in financial markets caused a sharp drop in mortgage interest rates last week, which resulted in a big spike in mortgage demand.

Total mortgage application volume jumped 20% last week compared with the previous week to the highest level since September 2024, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.61% from 6.70%, with points increasing to 0.63 from 0.62, including the origination fee, for loans with a 20% down payment. The rate is 40 basis points lower than the same week one year ago.

While the weekly drop wasn’t that large, it was the lowest rate since last October. That headline may have spurred current homeowners with higher rates to move quickly. Applications to refinance a home loan increased 35% from the previous week and were 93% higher than the same week one year ago. Part of those large percentage increases is simply that the volume is still so low that any move is outsized.

Much of the demand came from borrowers with larger loans, as they can get a bigger benefit from refinancing to a lower rate. The average refinance loan size rose to its second highest in the survey at $399,600.

Applications for a mortgage to purchase a home increased 9% for the week and were 24% higher than the same week one year ago. Purchase demand was at the highest level since January of 2024.

Homebuyers are still facing higher prices, despite more listings on the market. That may be why the share of adjustable-rate mortgage applications also rose last week to 8.6% of total applications from 5.4% the previous week. The average contract interest rate for 5/1 ARMs decreased to 5.93% from 6.04%, for loans with a 20% down payment, crossing into that emotionally significant 5% range.

The increase in mortgage demand, however, may be short-lived, as mortgage rates shot higher to start this week. A separate survey from Mortgage News Daily had rates rising 25 basis points Monday and Tuesday, erasing all of last week’s decline and more.

“Additional tariff updates can certainly still cause volatility, but likely not on the scale seen over the past few days,” said Matthew Graham, chief operating officer at Mortgage News Daily. “The safest bet would be to focus on this week’s inflation data, with Thursday’s CPI and Friday’s PPI both having a strong track record of influencing rate momentum.”

Read more at CNBC

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