Smart consumers, taking advantage of the historically low interest rates, the very good home prices and also, the extended and expanded tax credit, are helping to water a housing market growth. This is in turn helping the economy in general. According to several surveys, most of the current home owners say they would use the tax credit money to pay off existing debt, do home improvement, or invest it, or put it in savings.
Helping to energize the housing market is the reason behind the homebuyer tax credit and the recent extension and expansion. Consumer spending is, of course, the real water for the nation's economic growth, and a lot of consumer spending is fueled by the growing housing market, along with new jobs, and confidence in our country's rebound from the recession.