Extending The Tax Credit To Buy A Home

Both Republican and Democratic senators want to continue a government subsidy to encourage new home buying.

It looks like senators will vote to extend the credit until April of next year.

Home prices and sales have stabilized after a two year crash.

This deal is only for people buying a primary residence.

It reminds of the cash-for-clunkers fiasco.

It is just the type of government interference into the free market that created this mess in the first place.

WASHINGTON (Reuters) – The U.S. Senate's top Democrat and top Republican each voiced support on Wednesday for extending and expanding a soon-to-expire tax credit aimed at boosting the fragile housing market, though a vote on the measure could be delayed until next week.

Key senators agreed to extend the $8,000 first-time homebuyer tax credit, which expires at the end of next month, through April of next year, sources familiar with the matter told Reuters.

A spokeswoman for Senate Majority Leader Harry Reid said the deal would also allow for those who have been in their home for at least five years to receive a $6,500 tax credit if they purchase a new primary residence.