Trade Groups Step Up Pleas on Tax Credit

The Mortgage Bankers Association and other trade groups are stepping up their pleas to the White House, imploring the administration to extend the $8,000 first time homebuyer tax credit by at least 12 more months while allowing consumers to use the money for closing costs. In a new letter to officials at the White House, Treasury and the Department of Housing and Urban Development, MBA and two other industry groups contend the tax credit has dramatically reduced the inventory of new homes for sale to seven months from 12.4 months back in January. MBA, the National Association of Home Builders, and the National Association of Realtors, also want the credit expanded to all types of homebuyers. They contend that buyers of new homes spend an additional $12,000 on goods and services while buyers of existing homes spend almost $9,000. The White House has recognized the value of the tax credit but has not commented either way on extending it.