Later this week the U.S. Senate will vote on the stimulus package that was passed last week by the house.  No matter what your political views or stands are on this issue there is a component of the package that requires your attention today.  The $7,500 first time home buyer tax credit as it is currently written is not a true tax credit, but a 15 year interest free loan.  It is available to first time home buyers or those who have not owned a home in the past three years.  It also has income restrictions for higher wage earners, and as most of you know has had little impact on the housing market.

The U.S. House of Representatives bill passed last week changes this "tax credit" to a true tax credit that offsets, dollar for dollar, any tax liability.  This is great news for the slumping housing market, but should we ask for more?  The Senate Republicans have proposed increasing the tax credit from $7,500 to $15,000 and not limiting the credit to first time home buyers, but to ALL home buyers up to a certain income level.               

Along with an increased tax credit they would like to hold mortgage rates at 4% for a period of time.  The government would make up the difference between current mortgage rates and the "pegged" rate, with hopes buyers would be encouraged to take advantage of the lowest rates in history.

Are these actions necessary?  Do you believe they would stimulant our current housing situation?  If you believe these proposals would jump start our economy and get home buyers back into the housing market I encourage YOU to contact your U.S. Senator and let them know they should support these proposals.  

I have exercised my right as a U.S. citizen and made my voice heard, I encourage you to do the same.  

Troy Batson is a licensed broker in the State of Oregon ~ Duke Warner Realty ~ Bend, Oregon ~ troybatson.com