First Time Home Buyer Tax Credit Extension – $6500 Move-Up Buyers Helping?

The first time home buyer tax credit extension is expected to greatly help the housing market. Not only are first time home buyers receiving a check for $8000 move-up buyers are receiving a check for $6500. If you have lived in your current residence for five years or more and you are “moving-up” into a new home you have the opportunity to qualify for a $6500 tax credit if you close before April 30th, 2010. This is expected to but a jolt in the housing market but we have yet to see it take effect in the data.

Earlier this week we learned that mortgage applications fell by 11.7% during the week ending November 6th, 2009. This data is from a period in which home owners were still waiting to see if the first time home buyer tax credit was going to be extended. There is little doubt that this is a strong reason we saw a drop in mortgage applications over this period of time. The new data is likely to show a slight increase and as the month moves forward hopefully we will see mortgage applications rise.

With mortgage interest rates very close to all time lows now is a great time to lock in to a low mortgage rate on a first time house purchase or a move up purchase. Not only can you lock in to a mortgage rate well under 5% but you will also receive a tax credit. This is basically free money to put in your pocket so do not let this opportunity pass you by. Make sure to research which lender will work best for you but it should not be a problem finding a mortgage lender offering low mortgage interest rates.

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