Tax Credit Extension

Great news for the industry as the tax credit extension was signed by President Obama.  The current $8,000 tax credit for first time home buyers has been extended with an additional credit for existing home owners as well.  Buyers who have owned their current homes for at least 5 years are eligible for a 6,500 credit.  Both groups must sign a contract by April 30, 2010 and close by June 30th.

Also income limitations were increased to 125,000 for an individual and 225,000 for joint filers.

The unemployment rate hit 10.2% it was announced this morning.  This number was much worse than the 9.9% expected as employers continue to cut jobs.  The bond is up slightly in what should be a fairly active trading session today.  30 Year fixed rates continue to hover around 5.25% with 0 points.

Congress Urged to Extend Tax Credit
The National Association of REALTORS® is called upon its 1.2 million members to urge Congress to extend the successful homebuyer tax credit into next year.

Since its inception earlier this year, the $8,000 first-time homebuyer tax credit has brought 1.2 million new buyers into the market—350,000 of whom would not have purchased a home without the credit, according to NAR. The credit was due to expire November 30.

“Now is the time for Congress to keep this recovery going by extending the tax credit through 2010 and making it available to more homebuyers. We have all seen how the credit has been a spur to bring homebuyers into the market, and have seen the beginnings of a real recovery in the housing market. Housing has always led this nation out of economic downturns, and can do so again,” said NAR President Charles McMillan.