St Louis Home Loan Experts Say Federal Tax Credit Is Not Helping

In the last 24 months the American taxpayer has had to face lending and real estate crisis including unemployment rates that have been hovering in the doubledigits.

St Louis home loan analysts have feared that with unemployment escalating, there may not be any good news in the near future for the housing industry and that the expiring home buyer's tax credit as a complete failure.

The biggest letdown to most political representatives as well as mortgage and real estate experts is not only watching this major federal stimulus package go upin smoke, but equally disturbing is the fact that this administration is equally failing at saving houses from imminent foreclosure.

St Louis mortgage analysts also fear that a huge supply of discounted homes will hit the market in 2010 and this added supply of homes will only worsen an already failing industry situation.

There seems to be a gloomy type of atmosphere that is hovering over this decimated real estate market frankly due to there being no sign of any increase in the demand for buying houses or refinancing. And for those hoping to see some type of extension as regards the tax credit program, think again.

Tim Surrat, a practicing real estate agent, made the comment that, "No one is conveying that they need to buy before the tax credit expires." And that appears to be the most plausible outcry one could rightfully make at present .

Many St Louis refinancing analysts have agreed that the $6 500 to $8 000 tax credit has simply not been adequateas far as a monetary incentive to encourage people in making a buying decision now .

Mortgage, banking and financial consultants have said unequivocally that the savings on account of the home tax buyer's credit will emphatically not offset down payments or any other transactional expenses .

At current prices, the national average investment for a home currently is close to $164,000. If an agent charges 6 percent for their services, the total would be $9 840.  Logically, the $6 500 to $8 000 tax credit would not counteract the commission being paid.

As Roberton Williams, a senior official at the Tax Policy Center, said:  "You've got a really huge problem that requires big guns, and the tax credit is just not big enough."

Many lobbyists are asserting more time should have been spent on making this program much more financially advantageous to buyers rather than the apparent squandered time on the controversial passage of the currentl health care program.

Let's now turn our attention to the social security debacle that seems to be looming on the horizon. It too will need cash infusions to exist. Well, if this is maintained, one out of three wouldn't be that bad.