While the exact timing of an extension for the home buyer credit remains to be seen, the extention itself appears to be a done deal and it could come within a week.
First time buyers will continue to enjoy $8,000 credits from the government while buyers who have lived in their house for five years will also be able to receive a $6,500 credit if they buy a new house.
One of the reasons housing bears might turn out wrong is that the game is being rigged in the bull’s favour, whatever the undesirable cost to the U.S. taxpayer and financial system. We have to admit that it’s politically unpalatable not to support housing, even if we oppose the measure.
Reuters: “There has been general agreement by a significant number of senators, Democrats and Republicans, to get this done,” Reid, a Nevada Democrat, said on the Senate floor. Nevada has been hard-hit by the bursting of the housing bubble.
The chamber’s top Republican, Senator Mitch McConnell, also said most senators support the measure. “I certainly share his view,” McConnell said.
While extending the credit enjoys widespread support, its fate is caught up in a spat between Reid and McConnell over unrelated issues.
Reid wants to attach a bill to extend the homebuyer credit as an amendment to legislation to lengthen insurance benefits for unemployed workers.
The Reid spokeswoman said the unemployment insurance measure could get pushed to next week as lawmakers try to resolve differences over unrelated issues, which would delay consideration of the homebuyer credit extension.
“We will get this extension passed,” she said.