Market Update-Financials & Tax Credit

From the Desk of Bob Klorer-Foundation Mortgage

 

The FED kept rates unchanged which was expected…key points to take away from the meeting;
 
-  No real inflation concerns
-  Rates will continue to remain low for an extended period of time
 
This means mortgage rates will remain at record lows!
 
Senate voted late today unanimously to extend the current tax credit and House is expected to vote on bill by weeks end…key points;
 
-  $8000 credit will be extended to contracts signed on or before April 30th (allowing for a 60 day close)
-  Home buyers who have owned existing property for at least 5 years will be eligible for $6500 credit with new home purchase
-  Income limitations raised for individuals from $75,000 to $125,000 and family wage earners from $150,000 to $225,000
 
The above is consistent with what came out of committee and looks like will be the final bill which will be passed and signed.
 
Great news for everyone as many over the last week to two weeks have been waiting for extension and this will allow for a more prosperous home buying season during a typically slower period of time through the winter months!

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