House OKs Extension of Tax Credit Deadline
The House voted 409 to 5 in favor of extending the tax homebuyers credit for closing mortgages. The Senate can approve the measure in the next 24 hours, and with Presidential ratification, it's possible that no contracts fall through the cracks with the current deadline of June 30 looming. As it stands, homes currently under offer will be provided three more months to close in order to be eligible to receive the credit. Mortgage finance players were not surprised and reacted mutedly and with full expectations the bill will become law. One secondary market trader said in an email stream that he half expects the tax credit to come back after a few more rounds of dismal housing stats. Another said that the bill represents no new money coming to market and therefore, no change to their outlook for housing finance. Write to Jacob Gaffney.