Did the 2009 first-time homebuyer tax credit actually help anyone? Economist Dean Baker says yes — just not the people it was intended to help. In a new paper published by the Center for Economic Policy Research, Baker argues that the tax credit led to an enormous transfer of wealth to sellers and lenders, at the expense of buyers. (Oops.) The paper also shows how the credit pulled demand forward and incented buyers to pay what Baker says was “too much” for their homes, exacerbating the nation’s problem with so-called “underwater” homeowners. Read the report here. — Paul Jackson
Economist says first-time homebuyer tax credit hurt homebuyers
Most Popular Articles
Latest Articles
Judge approves brokerage commission lawsuit settlement agreements
Settlements reached by Anywhere, RE/MAX and Keller Williams in the commission lawsuits were approved on Thursday.
-
UWM returns to profitability in Q1 amid MSR sales, improved margins
-
Compass CEO Reffkin believes agents will still be valued in a post-settlement world
-
Former top executive withdraws lawsuit against Better.com and its founder
-
In Q1 earnings, Longbridge parent expects reverse mortgage market to improve
-
Judge denies Batton plaintiffs’ request to block settlement agreement’s final hearing