Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.
Under the Senate panel compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, the sources said. The measure still faces votes in the full Senate and the House.
Other news -The economy grew at a 3.5 percent pace in the third quarter, the best in two years, fueled by government-supported spending on cars and homes. Consumers led the rebound in the third quarter, snapping up cars and homes with cash from government support programs.
The turnaround ended the streak of four straight quarters of contracting economic activity, the first time that’s happened on records dating to 1947.
The government’s $8,000 tax credit for first-time home buyers supported the housing rebound. Congress is considering extending the credit, which expires on Nov. 30.
The collapse of the housing market help lead the country into the recession. The sector’s return to good health is a crucial ingredient to a sustained economic recovery.
This entry was posted on Friday, October 30th, 2009 at 6:21 am.