The current tax credit incentive the government has been offering is soon coming due, but lots of news coming out from Washington that it will be extended and maybe even changed as well…
Some of the ideas for these changes that have been put on the table are raising the income limits for the borrowers to still receive the credit, removing the first time buyer clause so that any buyer (of a primary residence of course) can receive it and even raise the amount of the credit from $8000 to $15k… although the last one is highly unlikely.
No matter what your opinion on the tax credit, it has spurred increases in sales and will definitely continue to do so if it’s left in place. I know of several people that got off the fence because of it and more will continue to do so. I get calls all the time with people asking when I think it will be ending, so it’s obviously a concern they will miss the boat. This along with historically low rates has made it one of the better times to buy and it’s and it seems people are trying to take advantage of it.
According to what we are hearing the tax credit extension will most likely expire in June 2010. This is about the time many feel we could start to see an increase in interest rates with Fed starting to raise the funds rate and hopefully avoid inflation. What will actually happen is anybody’s guess based on what we’ve seen the past couple of years, so everything should be taken with a grain of salt, but this is what we’ve got to go on for now.
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