After haggling since September the US Senate finally passed an extension for unemployed persons and extended the credit for first time home buyers.
The situation for unemployed persons is dire. Here are just a few facts about their current situation:
- We have 15 million unemployed vying for just three million available jobs.
- 200,000 persons lost their benefits since September
- 7000 persons a day are losing their benefits.
- More than 1/3 of the unemployed have been out or work for at least six months.
The legislation would extend benefits for 14 weeks for all states and an additional six weeks for those who live in states with unemployment greater than 8.5%. The US House passed a similar bill in September.
Under the Senate bill, the first time home buyer credit would be extended to contracts signed by April 30 and closed by June 30. The bill also creates a $6,500.00 credit for those who buy a house after living in their current home for at least five years.
The credit would apply only for the purchase of a principal residence priced at less that $800,000.00
Through mid September, 1.4 million tax returns had qualified for the credit, according to the IRS. By the end of November, the credit will extend to 1.8 million home buyers.
Current data show that the tax credit has had the desired impact. Sales have jumped to a projected 5.1 million for the year, according to Ron Phipps of the National Association of Realtors.
What are your reactions to this legislation?
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Reader Comments (Page 1 of 1)
11-05-2009 @ 9:50PM
william lindblad said...
Political, but positive. Note the 800,000 fig which seems a tad high. There is an excess inventory in this range (450K and up) but there is a bugaboo - jumbo notes - at present they are none existent. The good Senators should talk to the bankers.