For three straight weeks we have seen a move higher in mortgage applications.? Much of this can be attributed to the first time home buyer tax credit extension.? Even though the adjusted increase for mortgage appications was only .3% it was still an increase.? It looks as if the extension of the first time home buyer tax credit continues to pique the interest of home buyers but not nearly as much as it did when it was first announced.


Another reason that we could be seeing a slow down in the increase in applications is the fact that many American homeowners are going to wait until 2010 to submit their application for their first mortgage or a refinance.? There is absolutely no agrument to be made that the amount of people interested in applying for a mortgage drastically increases when January rolls arounds.? Expect the same thing to happen this year.

No one really knows just have much the first time home buyer tax credit extension will help the overall housing market but it sure has assisted in putting a floor in when it comes to home prices.? Eventually the government is going to have to stop enabling Americans but it looks as if they have made the right moves so far.? The major question that must be answered is when is the government going to stop pushing mortgage rates lower and giving out tax credits?

Author: Jesse Wojdylo