WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.

Look like the tax credit is going to be extended. Even though it has ways to go, this is a big step in the process. As all of you know it provides up to $8,000 to first-time home buyers but is set to expire at the end of November. When the Commerce Department came out on Wednesday and said that new home sales fell 3.6 percent in September,  some industry representatives blamed uncertainty about the tax credit.

So, what do the Senators in Washington do?  They agree to extend the existing tax credit for first-time home buyers. Not only due they extend it but they add a little something special on to it as well. They are offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

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