The Mortgage Bankers Association, the National Association of Home Builders and the National Association of Realtors are lobbying Congress to extend the $8,000 First Time Home Buyer Tax Credit that is set to expire November 30th. These groups, battered after a year that saw the housing market in tatters, are eager to prolong the momentum begun this summer as hundreds of thousands of first-time buyers purchased new homes. With challenging new banking and financing regulations slated to take effect in the new year, housing industry officials hope that the positive buzz created by the tax credit will continue to stabilize the market.
Also of note… Rates on fixed-rate 30-year mortgages fell to 4.87%, the lowest since May. 15-year rates dropped to 4.33%, the lowest since 1991. 5-year Treasury-indexed ARM’s averaged 4.35%, compared to 5.9% one year ago. Numbers like these are a benefit for consumers, translating to hundreds of dollars off monthly mortgage payments. The low rates are spurring demand for mortgages, with applications increasing 16.4% for the week ending Oct. 2nd.
Wit lower mortgage rates and a possible extension of the homebuyer tax credit, the signs are good for potential homebuyers as 2009 winds down.
