New First-Time Homebuyer Tax Credit In 2010–Will First-Time Buyers Wait Out Possibility Of New Credit?

Recent rumors have indicated that there may be some interest for reviving the first time and repeat homebuyer tax credit which was popular earlier this year. Home sales have been low after the tax credit expiration and many believe that giving homeowners an incentive to buy would now create the perfect opportunity for homes that are simply sitting empty to be bought as interest rates on mortgages are quite low.

While the extension of the first-time homebuyer tax credit is just speculation, were a new home buyer tax credit to be proposed there would certainly be arguments over issues like the necessity of this tax credit, cost, and where funding would originate in order to pay for such a tax credit. Yet, many are questioning whether potential homeowners are waiting to see if this credit may be proposed in the coming months or whether they will take advantage of low mortgage interest rates that are currently being offered.

It’s understandable that a homeowner who could receive a tax credit from buying a home, which may help with costs like those that are associated with closing on a home, many are wondering if homeowners are simply hesitant to buy or if other factors are causing the slump in home purchases. Mortgage interest rates are low, home prices which are said to be going up are still at affordable levels, and there are certain homebuyers who would stand to benefit from locking in a low interest rate at the present time.

However, the idea of a new first-time home buyer tax credit to promote the sale of homes may have some simply waiting to see what happens. While there are those who would back such a proposal and there are also individuals who say that no such proposal has even been discussed; homebuyers, even first-time homebuyers, are presently still able to take advantage of low mortgage interest rates and may see opportunities to get a more affordable home loan payment, even if a homebuyer tax credit is not offered.