Home Buyer Tax Credit Countdown Begins

The first-time home buyers tax credit ends Nov. 30. Is it possible to buy in the next two weeks and still close in time to collect it?

Some professionals say yes. “It still can be done in six weeks," says RE/MAX Town & Country associate Lynn Ayers in West Chester, Pa.

Economist Kevin Gillen of Econsult predicts a mad rush to close as the deadline nears.

Bruce Hahn, president of the American Homeowners Grassroots Alliance in Arlington, Va., is pushing for an extension and an expansion of the credit.

Legislation to do that is critical, he says, because the recovery has so far been mostly jobless and people need more time to get their feet on the ground in order to buy.

Source: Philadelphia Inquirer, Alan J. Heavens (08/31/2009)

Refinances Decline

Refinances Decline as Rates Rise Overall, mortgage applications declined 3.5 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey, but the decrease was primarily in refinances because of rising interest rates.The seasonally adjusted purchase index actually increased 1.1 percent, the third gain in the last four weeks, while the refinance index fell 7.2 percent.On an unadjusted bases, the weekly mortgage index, which measures loan application volume, decreased 3.7 percent from the previous week, but was up 16.1 percent compared with the same week a year ago.Rising rates put refinancers in a wait-and-see mode. Here's a roundup of rate increases:
30-year fixed-rate mortgages increased to 5.38 percent from 5.17 percent
15-year fixed-rate mortgages increased to 4.71 percent from 4.60 percent
1-year ARMs increased to 6.71 percent from 6.67 percent.Source: Mortgage Bankers Association (08/12/2009)

Recession is over?

Economists Pronounce the Recession Over The majority of economists surveyed by the Wall Street Journal say the recession is over and Federal Reserve Chair Ben Bernanke deserves another term.Of the 47 economists the newspaper surveyed, 27 said the recession has ended and 11 predict another trough this month or next. The rest refused to commit. But they were nearly unanimous is saying that Bernanke should be rehired.Gross domestic product is expected to grow 2.4 percent in the third quarter at a seasonally adjusted annual rate. Economists were also heartened by a better-than-expected jobless report in July. Source: The Wall Street Journal, Phil Izzo (08/12/2009)