Some kind of extention to the tax credit now likely..

The Senate yesterday seemed to be in some sort of agreement on some form of extension of the first time buyer tax credit and President Obama signaled that he supports an extension. It's not clear from the various messages being put out by various Senators (Senator Dodd of Connecticut said is is a done deal, but other Senators said not so fast) that agreement has yet been reached on the details or how what they want might be reconciled with whatever the House wants, but it does seem fairly sure that something will become law soon to extend the home buyer tax credit program.

There is still disagreement on the issue of who will be eligible - whether the program for first time buyers will just be extended or whether it will be expanded, as some Senators want, to include other buyers - so-called move-up buyers. While first-0tie buyers have provided a great boost to the market and have helped clear out a bunch of the cheaper foreclosed homes from the inventory, it would have a bigger impact if the people who now own a home and who wish to move up to a bigger home also had this incentive. They have largely been frozen out of the current market by the lack of credit by big lenders and no tax incentive at all to take action.

Other details to be worked out include what payback,if any will be required and over what period and what income restrictions the new program might have (that has been another stumbling block for move-up buyers, who in generally aren't in the lower-income brackets that the original program was aimed at helping).

So, even thought the news media rushed to tell everyone that the program had been extended, it has not yet even been officially voted upon in the Senate and has not been reconciled with the House or signed by the President. Remember that song from Sesame Street - "I'm just a bill." It may not even be that, yet. Let's all keep our fingers crossed that they actually do pass something soon.