Housing Tax Credit Working
Consumers are just starting to see a ray of hope for the housing market and the overall economy because of the Homebuyer Tax Credit. The housing market has been on the rise and numbers have been increasing for the last seven months. Although it is on the rise, it is up to Congress to make that hope, a reality by building on the momentum that was created by the $8000 home buyer tax credit. There are many ways that Congress can build the momentum and keep the housing market on the upswing.
One way to build momentum is for Congress to extend the home buyer tax credit. Home sales have jumped in recent months and the housing inventory has improved. This has resulted in a stabilization of home prices. Why not keep a good thing going.? If it’s not broke, then don’t fix it! If they stop this homebuyer tax credit too quickly, in other words before the economy turns around, then the economy could end up worse then it started and on top of it be way more in debt.
Now is the time to build on home sales and expand it to all home buyers. Prices are low and it is a great time to buy, especially with the Homebuyer Tax Credit that is slated to expire November 30th. However, this cannot help new purchasers now who write a contract today, because they won’t be able to close before the deadline. Without Congress acting now, the market and our national economy may freeze again, possibly as soon as this month.
There are a number of other actions that can strengthen the economy as well. First of all, make the FHA and Fannie May/Freddie Mac loan limits permanent, those programs are set to expire at the end of the year. Maintaining current loan limits would ensure that families would have access to low cost financing and also refinance problematic loans into safer, more affordable mortgages.
Also Congress should continue to aid in the secondary mortgage market. Without this help, market participants will have no incentive to reach out to lower incomes consumers who have great credit. They need the federal government involvement in the secondary mortgage market. We must ensure that the housing markets works in all aspects of the market at all times and the mortgage capital is provided to all qualified and potential purchasers in a way that promotes sustainable homeownership. It is time to end this downturn and finally recover from all the damage done!
Tags: $8000 first time homebuyer tax credit, $8000 Homebuyer Tax Credit, Homebuyer tax credit, more affordable mortgages, refinancing your home