First Time Home Buyers Tax Credit Extension – Is Obama Helping the Housing Market?

Posted on | January 30, 2010 | No Comments

The first time home buyer tax credit extension was designed to get more first time home buyers into the housing market which should stabilize home prices and hopefully cause an increase.  Over the last few months President Obama has worked hard to keep interest rates low, along with the Fed, and create tax credit for first time home buyers and move up home buyers.  Home prices have stabilized but many analysts are predicting a drop again soon.


Even though the first time home buyer tax credit was extended it has not greatly helped the housing market.  Many people feel that home buyers have become complacent because they know they have until at least April to make that home purchase.  Some reports have come in saying the home sales are actually down since the announcement of the first time home buyer tax credit extension.  It will be very interesting to see if things pick up before April.

At the beginning of spring we could see a huge amount of home buyers come into the market.  Many analysts are predicting that mortgage interest rates are likely to move up when the Federal Reserve Bank stops buying mortgage backed securities at the end of March.  If mortgage rates start to move up right as the first time home buyer tax credit is expiring there is sure to be a swarm of buyers that are looking to lock in low mortgage rates.  It will be very fun to watch as this unfolds.

Author: Jesse Wojdylo

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