Another Housing Bailout on the Way

Just as federal officials seek to wind down many bailout programs, the Obama administration has announced yet another initiative to prop up the housing market.

Administration officials unveiled a plan to aid state and local housing finance agencies, which provide mortgages to first-time and lower-income homebuyers and enable the development or rehabilitation of rental properties. Officials declined to put a price tag on the program, but said there would be no cost to taxpayers.

The measure will enable housing agencies to lend to hundreds of thousands of families and enable the development or rehabilitation of tens of thousands of rental units. The agencies operate in all 50 states and in many cities.

Congress is considering extending the $8,000 tax credit for first-time homebuyers, which ends November 30th.

The credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, by the end of November, according to estimates by the National Association of Realtors.

What do you think? We’d like to hear from you! Do you think Congress should extend the $8,000 tax credit, and do you think this new initiative will do anything to improve the real estate market?

Use the comment link below to tell us your thoughts on this new housing bailout, as well as your thoughts on extending the tax credit for first time homebuyers.