Real estate group pushing for better tax credit program for home buyers
WASHINGTON, DC (October 15, 2008) -- The National Association of Realtors, a national trade association representing real estate agents, is pushing Congress to act on behalf of the residential real estate market before the end of 2008 during the lame-duck session before the new President takes office in January.
The NAR points out that the $7,500 first time home buyers' "tax credit" -- actually not a credit at all, since the $7,500 must be repaid with interest over 15 years -- be made into an actual credit, with no repayment terms. Additionally, the group's proposal would expand the tax credit to all home buyers and possibly even increase the amount up to $12,000.
The initiative is designed to bolster the real estate market, which serves as the foundation for a large part of the U.S. economy. By giving buyers additional incentive to buy homes, the group hopes to instill confidence in the safety of real estate as a family investment.
The NAR is also pushing Congress to make permanent the temporary FHA, Fannie Mae and Freddie Mac stimulus loan limit increases which were put into place in February as part of the Economic Stabilization Act. Currently those loan limit increases are set to expire at the end of 2008. Increased loan limits allow people in expensive markets to buy and refinance homes without paying the higher interest rates associated with "jumbo" mortgages (loans of more than $417,000).
These initiatives only target the home sale side of the U.S. Housing market's woes; additional support -- helping homeowners in trouble with their mortgages to avoid foreclosure -- is necessary in order to stabilize the real estate market.