New 2010 Homebuyer Tax Credit May Help Housing Market But Will New Credit Find Support?

There have been reports that consideration is being given to a new homebuyer tax credit program in order to help the housing market which has stalled after the expiration of the previous first-time and repeat homebuyer tax credit program. However, there are those who feel that a new tax credit may be unhelpful at the present time.

Reports indicate that there is some consideration for a new homebuyer tax credit currently as supporters of the notion cite the fact the housing market has seen a drop in home purchases after the tax credit was no longer offered. Simply put, this means that the original first-time homebuyer and repeat homebuyer tax credit were helpful in spurring the sale of homes.

While there are supporters for this movement, many believe that it may not even get off the ground or be proposed officially due to the fact that there is concern over where funds would originate to fund another tax credit. Also, many analysts believe that the housing market should be given an opportunity to work itself out and assistance programs, like a homebuyer tax credit, could slow housing recovery.

Low interest rates on home loans at the present time have made it more affordable for certain homeowners to either refinance or buy a home and many feel that if a homebuyer tax credit were to be offered it could be beneficial when it comes to potential homeowners purchasing a new home. While there is the belief that potential homebuyers may be prompted to enter the housing market if a new tax credit were offered, there are those in the opposition who feel that the housing market will eventually correct itself and a new tax credit is unneeded.