$8,000 tax credit for 1st time homebuyers....
They NAR was vigilant in it's efforts to get this one added into the stimulis bill. But is this really the answer to fill up all the vacant and vacated houses in your farm area? The $7,500 tax credit got very little response. Folks aren't buying homes for various reasons:
- Many who qualify are afraid they won't have a job to make the mortgage payments
- 1,000's of others no longer qualify for a mortgage (even FHA has raised it's score requirements to 620 along with at least 3.5% down)
- Others are simply waiting because 'someone told them' that the government was going to offer rates at 4.5% (I hope they're not holding their breaths! Hahaha)
"The sky is falling" is being chiseled into the conscious of every American consumer; this in turn generates actions that lead to the prophecy's self-fullfillment.
All day long and half the night, all Americans are hearing and talking about is 'how bad the economy'! Fear mongering is big business and the media is selling it like hotcakes!
Is the $8,000 is going to make a difference- any more so than the $7,500 did?
Consumer confidence, (which is rightfully at an all time low) and not throwing more money toward the problem, is the only thing, in my humble opinion, that will get this economy moving again.
Ron Reed, Commercial & Residential Mortgage Banker
Malcap Mortgage, LLC
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