The first time home buyer tax credit extension was a very popular topic last money but the $8000 and $6500 Obama tax credits expired on April 30th, 2010 therefore there was no extension. ?It will be very interesting to see how the overall housing market adjusts to first time home buyers being reluctant to buy.


At the present time we are seeing mortgage interest rates well under 5% so there is a good chance that the housing market will hold up with low overall rates but with no first time home buyer tax credit the amount of housing activity could drop when compared to March and April of 2010.

President Obama and his staff continue to work very hard to keep interest rates low but eventually the market is going to set rates. ?When this happens there is a very good chance that we could see first time home buyer interest rates as high as 6%. ?While this may be a stretch some analysts are predicting rates this high.

With no first time home buyer tax credit extension we can expect to see the activity from first time buyers decline. ?Even though there is no $8000 or $6500 tax credit it does not mean that the overall housing market will break down.

Author: Alan Lake