The National Association of Homebuilders believes we need an Emergency Stimulus Bill... afterall, housing starts are at the lowest since 1991 (and as Tanta notes "completions followed starts off the cliff...).
The package, according to NAHB needs to include a "temporary tax credit for HomeBuyers," and, in thier Online Newsletter, they urge all members to contact their Representatives as part of a ground swell grassroots efforts. Apparently CTX has already sent 6000 letters!
"At the top of the list of provisions that are needed, he said, is a temporary home buyer tax credit to stimulate home buying and reduce excess inventory. To maximize its effectiveness, the credit should be as big and unencumbered as possible, he said, and it should be geared to taking effect "as rapidly as Congress can make it."
Revitalization of the Federal Housing Administration, reform of Fannie Mae and Freddie Mac, expansion of the mortgage revenue bond program and enhancements for the low-income housing tax credit are other components of the final bill that the Congress should soon be presenting to the President for his signature, Howard indicated.
To hasten consideration of a stimulus package, Howard said that the association had decided to jettison its support for a provision to allow businesses to carry back their net operating losses (NOLs) over an additional timeframe. "Though NOL would have been helpful, even our big builders agree that the best way to get housing back on its feet is to enact a temporary home buyer tax credit," he said."
While I'm a BIG fan of "modernizing" FHA - and I have nothing against low-income housing tax credits... I'm worried about Congress writing more checks right now! Afterall, I'm a mortgage lender and I'm still looking for lower rates! With the most RECENT checks from Dubbya - we all went on a spending spree. The SPENDING SPREE is being blamed for a "SMOKIN' Economy" that probably won't need anymore rate cuts!
I don't know... I'm just not sure another tax credit (of any kind) is the answer.
If you are considering a purchase in Raleigh, or Cary, and you're looking for the best mortgage rates, contact Steve and Eleanor Thorne919-649-5058
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