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The full impact of the 2018 tax law has not yet been fully reflected in homeowner taxes or property values, according to The New York Times, but first-time home buyers will likely face rising prices, especially in high-tax states. Taxpayers used to be able to deduct all state and local taxes, including property taxes, but these are now capped at $10,000. The new tax law cut the deduction for mortgage insurance premiums and lowered the mortgage interest deduction from $1 million to $750,000.

Even for first-time buyers who are ready for these prices, historically low inventory remains a challenge and drives prices up further, the Times reports. Financing is tight in the “hangover” phase of the financial crisis, Jen A. Miller writes, affecting first-time buyers and current homeowners, whether they’re upsizing or downsizing.

With interest rates currently at 4.54 percent for a 30-year-fixed rate mortgage per Bankrate — which is still a relatively low rate, despite having increased in the last year — lenders don’t have much incentive to lend. But higher interest rates could change that and eventually make it easier for first-time buyers to get a mortgage.

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