CNBC’s Jim Cramer said Friday that Wall Street is witnessing the best bull market in homebuilders that he can “ever recall” but Congress is “fooling around” with it.
After the bell Thursday, homebuilder KB Home beat Wall Street’s quarterly earnings and revenue estimates and saw average selling prices rise by 12 percent, with profit margins expanding as well.
“You look at the homebuilders and regardless of what is happening and what they’re saying in Congress, this is the best bull market in homebuilders that I can ever recall,” the host of CNBC’s “Mad Money” said.
“The homebuilders are signaling a bull market. It’s just an out-and-out bull market in homes,” Cramer added on “Squawk on the Street.” “And you know they’re fooling around with stuff that could affect the bull market.”
On Wednesday, Republicans unveiled their blueprint for an overhaul of the U.S. tax code and it keeps the mortgage deduction, which taxpayers can only claim if they itemize.
But given that the GOP proposes to double the standard deduction, people may choose the new higher standard deduction instead of itemizing.
Top White House economic advisor Gary Cohn said Thursday that “People don’t buy homes because of the mortgage deduction.” Instead, people buy homes because “they’re excited and optimistic about the economy,” he said.
On Thursday, Cramer spoke about the Republican tax plan. He said he can’t see any lawmaker from high-tax states voting for President Donald Trump’s blueprint if it eliminates the deduction for state and local taxes.
On Friday, Cramer said the plan is “soaking the rich.”