Call For New Homebuyer Tax Credit May Help Housing Market–Will Congress Approve A New First-Time Homebuyer Tax Credit?

Ongoing speculation over a new homebuyer tax credit has many potential homebuyers wondering if the Obama Administration will in fact propose a new round for the popular homebuyer credit which helped increase home sales over the past months. There are reports that say there is little support for a new tax credit and indications that an extension of the first-time homebuyer and repeat homebuyer tax credit are simply not a high priority at the present time.

However, despite the fact that there have been no official talks over offering a new homebuyer tax credit there are those who would support the idea as the previous tax credit did help the housing market by prompting would-be homeowners to take the step into homeownership. The purchase of homes has decreased since the expiration of the tax credit as many people believe that without incentives they cannot afford things like closing costs on a home.

Unemployment is still taking quite a toll on the housing market, but those who are in favor of a new tax credit point to the fact that many homeowners simply feel that the cost of closing on a home is what causes hesitation in many homebuyers as there are those who can make monthly mortgage payments especially since interest rates are quite low.

Essentially, homebuyers who were given a tax credit could regained some of or all of the money they lost when paying closing costs. Again, low mortgage interest rates have made many mortgage payments quite affordable for homeowners over the past months and, if a new tax credit was offered, it could prompt more consumers to buy a home.

While, again, there have been no official talks as concern over the source of funding for this tax credit could cause a high amount of debate if the issue is brought up, there are certain legislators and would-be homeowners who are in favor of the idea of reopening the opportunity for a first-time or repeat homebuyer tax credit.