This just in… The House of Representatives has voted to extend — and expand — the first time homebuyer tax credit.
Extending the $8000 credit, adding a $6500 credit
According to the NY Times:
The bill extends an $8, 000 tax credit for first-time home buyers that was due to expire on Nov. 30, making it available to those who have a contract before May 1 on a primary residence priced at up to $800, 000. The bill also creates a new credit of up to $6, 500 for existing homeowners who buy a new residence if they have lived in their current one for at least five of the last eight years.
The income limits for the homebuyer tax credit are also going up, from $75k/$150k for individuals/couples to $125k/$225k. Beyond that, the credit phases out. This extension/expansion is projected to cost nearly $11B.
Extending unemployment benefits
This bill also extends unemployment benefits, as follows:
The measure [also] provides up to 14 weeks of additional assistance to unemployed people who have exhausted their state and federal benefits, but up to 20 additional weeks to those in about 26 states with unemployment rates exceeding 8.5 percent.
The President is expected to sign this bill into law as early as tomorrow (Friday). Also if you’re in the market for a mortgage, you can compare current mortgage rates here.