Interest rates are up and tax credit news

Bad news: interest rates are up. This will likely put the brakes on our local market somewhat. The good news for buyers is that houses will likely be staying on the market longer.

Remember HUD's move to monetize the $8000 first-time buyer tax credit? So a buyer could actually apply it towards down payment or closing costs? Guidelines and details are still not out on that yet. I predict that very few people will actually be able to use the credit this way.

And speaking of: did you know there are income caps on the $8k tax credit? If you are single, and make more than $75,000, the credit is reduced. If you make over $100k, it is eliminated. For couples, the salary threshold is $150,000.