New Plan to Help Home Buyers in the Works
Image via Wikipedia
It is little surprise that, even as the stock market soars today, that the home builder sentiment index is falling. The first time home buyer tax credit that so many have been taking advantage of over the last few months is set to expire November 30. However, since the mortgage has to close by the deadline, anyone who hasn’t already got things in motion is unlikely to make the deadline. And it also means that home sales are likely to dip this month, and the months after. No wonder home builders are concerned. So, with the imminent expiration of the first time home buyer tax credit (unless Congress extends the deadline), there is a new plan to help home buyers.
Obama Administration ready to unveil new plan to help home buyers
In order to try and continue stemming the tide of foreclosures, the Obama Administration is working on a new plan. This is not one that will help in terms of new home buyers. Subprime Blogger offers this summary of the new plan to help home buyers:
The new mortgage help plan will have two parts. The first part will be a new bond purchase program that will support new lending by housing agencies. The second part will be a temporary credit and liquidity program to improve the access that housing agencies have to credit sources. This comes on the heels of the Federal Reserve Bank stopping their purchases of US Treasuries by the end of October.
Clearly, the idea is to keep mortgage interest rates low so that people are still interested in using home mortgage loans to purchase. (This should also help those wishing to refinance.) The plan will provide money to state housing agencies that work to help low to middle income earners buy homes. The idea is to provide funding so that more people can afford homes. It is important to be careful here, though, to make sure that buyers can afford the homes they are getting. Otherwise, we’ll end up with a repeat of the mortgage market disaster.
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October 28th, 2009 at 10:20 am
[…] New Plan to Help Home Buyers in the Works Image via Wikipedia It is little surprise that, even as the stock market soars today, that the home builder sentiment index is falling. The first time home buyer tax credit that so many have been taking advantage of over the last few months is set to expire November 30. However, since the mortgage has to close […] […]