Homebuilders drop as new buyers see US tax break cut in half

[NEW YORK] Millennials looking to enter the housing market might not be cheering the Republican tax plan.

The bill's talking points, released Thursday, suggest that the interest deduction for existing home mortgages will be preserved in full, but newly purchased homes will see the cap cut in half, to US$500,000.

The SPDR S&P Homebuilders exchange-traded fund, ticker XHB, is stumbling in early trading, seeing its biggest loss in a year.

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