Below is a commentary from CNBC on September 3, 2009 pointing at that historically speaking when the interest rates fall below 5% the Home Buyers comes out to play, and in a big way. The Fall selling season we are entering needs this; but as this story also points out when rates drop as they did last Spring it shows an increase in mortgage applications, not necessarily people buying homes. In the Spring of 2009 a huge portion of this was done for refinancing existing loans. As of now, the re-financing rates are not as attractive as they were last Spring, and still not near new purchase rates.
This video also briefly talks about one of the Top 3 Questions I have been asked about over the last few weeks.
Will the First Time Home Buyer Tax Credit be extended or expanded?
Diana Olick from CNBC says the same thing I have been reading and then advising for months.
There are pitches, and pushes to either extend the tax credit into next year, there are even some Senators and Congressman that want to expand a tax credit to everyone. I believe the latter is highly unlikely, at least in this stage of the game. As for extending — no one knows at this point? I wouldn’t wait if it were me.
If I met this criteria:
- Financially able to acquire a good mortgage
- Could Pay my own 3.5% Down Payment
- Found a house I liked
- Secure marriage/relationship
- Stable Job/Income
I would not be taking my chances hoping the $8000 Tax Credit for First Time Home Buyers was going to be extended. As the interview points out the National Association of REALTORS, and the National Association of Home Builders, and plenty of other lobbyist are going to be pushing for an extension. My take — Although it has been a very good Summer, I still feel this has been a soft housing recovery, and things are already slowing down in Denton County, even with interest rates incredibly low.
What do you think?
Will interest rates rise by Winter?
Are you waiting for an extension in the tax credit?
OR
Are you not a First Timer and hoping the tax credit will be expanded to everyone?
Related Articles:
- Monetizing the Tax Credit for a Down Payment: Clear as Mud Ever since the May 12th announcement from HUD1 that the $8000 First Time Homebuyer Tax Credit was going to be able to be used as a down payment I believe...
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