First Time Home Buyer Tax Credit Extension Helps Mortgage Application Data
Posted on | December 10, 2009 | No Comments
The first time home buyer tax credit extension was expected to help increase interest in the United States housing market and that is exactly what we have seen. Yesterday we found out that mortgage applications increase 8.5%. Much of this jump was due to refinancing which accounted for 74% of all applications. Refinance applications were up a total of 11.1% for the week while purchase applications were up 4%.
Even though purchase applications were up only 4% this is still a sign of improvement. Over the last several months we have seen home prices stabilize and much of this can be attributed to the first time home buyer tax credit. First time home buyers bring home an extra $8000 check has made many potential first time buyers consider the idea of home ownership. Along with the extension through April of 2010 the tax credit has been expanded to move up buyers as well.
If you have been a resident of your home for more than five years then you can receive a $6500 tax credit for moving up into a new home. This is free money in your pocket which could go towards many other financial concerns you may have. It will be interesting to see what the data shows as far as move up buyers. We will not be able to analyze this data for several months but there is a good chance that it will do a lot to help the housing market.
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Author: Mike Garner
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