Tax Fix Could Unlock Homes for Owners Over 65

Current mortgage rates near ~7% have widened the gap with many existing loans near ~4%, making moves much costlier for long-time US homeowners.
For owners who held homes for decades, selling can also trigger capital gains tax when profit rises above an exclusion threshold unchanged since 1997.
The proposal would reindex that tax cap to current home prices and apply it only to owners over 65, targeting many longest-tenured sellers.
The economist said lower inflation could help bring mortgage costs down, but argued the tax barrier would still matter for long-held homes.
The proposal remains only an idea, so current law still applies; owners weighing a sale can compare their loan rate and tenure.