Misuse of Home Buyer Tax Credit Reported

I know some of these people did not realize, but surely there are some taking advantage of the current situation!!
"A report earlier this month from the Treasury Inspector General for Tax Administration estimates that 73,799 taxpayers have incorrectly claimed the first-time home buyer tax credit. The report concludes: “The IRS is unable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is processed.”

The IRS didn’t dispute the claim, but said it was studying the matter further. Some have suggested that this report and others will encourage Congress to put some safeguards in place before more claims result from the extension and expansion of the tax credit.

Source: The New York Times, Lynnley Browning (12/22/2009)

Daily Real Estate News | December 28, 2009"

http://www.realtor.org/RMODaily.nsf/pages/News2009122801?OpenDocument

Interest Rates Predicted to Reach 6%

Something to keep in mind...

"Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Daily Real Estate News | December 28, 2009"
http://www.realtor.org/RMODaily.nsf/pages/News2009122803?OpenDocument