First time buyer tax credit

Fight looming on tax break to buy houses - Some people are asking whether the housing market can function without the $8,000 tax credit. This year, as many as 40% of all home buyers will qualify for the credit. It is on track to cost the government $15 billion - more than twice the amount originally projected. The real estate industry, as well as some economists, believe that the money is well spent - encouraging recovery in the housing market. According to analysts, the credit is directly responsible for several hundred thousand home sales. The National Association of Realtors wants Congress to extend the credit at least through next summer, to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify. The price tag on that plan: $50 billion to $100 billion. Mortgage applications increased nearly 10% for the week ending Sept. 3 from late August, the largest gain since early April and the latest of many signs of life in real estate. The upturn can be attributed to several factors: the return of confidence, very low mortgage rates, and prices in some markets that are at decade-low levels. The looming expiration of the tax credit seems to be playing a role too, particularly in relatively low-cost markets like Phoenix, Las Vegas and Dallas.
http://www.msnbc.msn.com/id/32872167/ns/business-the_new_york_times/