| St Louis Refinancing and Lending Professionals Say Federal Tax Credit No Help |
| Articles - Mortgage |
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The United States has been arguably experiencing not only a stale real estate market, but the highest unemployment rate since the Great Depression of 1929.
The United States has been arguably experiencing not only a stale real estate market, but the highest unemployment rate since the Great Depression of 1929. So, with unemployment hovering at around 10 percent, St Louis mortgage experts had high hopes that the home buyer's tax credit bailout plan that was instituted would stimulate housing demand in this already decimated market. The biggest letdown to both political representatives as well as mortgage and real estate professionals is not only seeing this major federal stimulus package go down in smoke, but equally disturbing is the fact that this administration is equally failing at saving homes from inevitable foreclosure. Now what is causing supplemental apprehensive among St Louis home loan circles is the likelihood that huge amounts of discounted homes will come on the market which would only excerbate a floundering venue. What is worse is that there is no sign that this country will see any type of expansion in the housing market nor is there any immediate hope that there will be a huge demand for home purchases or refinance loans. And don't expect to see any last minute extension for the tax credit stimulus program. Tim Surrat, a practicing real estate agent, made the comment that, "No one is saying that they need to buy before the tax credit expires." And that seems to be the most plausible outcry one could rightfully make right now. Some experts are saying that the size of the tax credit at $6,500 to $8000 is actually too small to influence buyers to make any kind of immediate buying decision. Mortgage, banking and financial consultants have stated unequivocally that the savings on account of the home tax buyer's credit will definitely not offset down payments or any other transactional costs. At current prices, the national average price for a home right now is close to $164,000. If an agent charges 6 percent for their services, the amount would be $9840. Logically, the $6500 to $8000 tax credit would not offset the commission being paid. "You've got a really big problem that requires big guns, and the tax credit is just not big enough," said Roberton Williams, senior fellow at the Tax Policy Center. Now that this federal program is close to being extinct, many are now arguing that more time should have been spent on making this stimulus much more financially appealing to Americans and perhaps less time should have been spent on the recent health care package. The next crisis that seems to lay ahead of our political decision makers is will the social security system get the needed emergency cash to help keep it going. Let's hope this agenda passes with gold stars. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about a St Louis home loan, then visit Floyd J. Tapia's site on how to choose the best St Louis mortgage for your needs. Call his office 24 Hours at 877-334-0210 or 314-334-0210. |