There are wide economic factors that drive interest rates and a number of economists on a recent NPR program feel that as inflation begins to appear interests rates will rise. A 1% change in interest rates can make a difference in the price range that a buyer afford. Below is a table that shows the impact a 1%  interest rate increase can have in the monthly payments on a  30 year mortgage.

With this information in mind we are suggesting that any prospective home buyers who have been considering making a move do so now to take advantage of the affordability of Cincinnati’s current real estate market, the low interest rates, and the $8,000 tax credit for first time home buyers.

In 2008 Congress introduced a $7,500  refundable tax credit in the Housing and Economic Recovery Act of 2008 (H.R. 3221), the amount taken by a homebuyer is to be paid back over a 15-year period. The major change under H.R. 1, is that he $7,500 would become a full tax credit – the homebuyer would not have to pay it back.

Near the end of 2008 NAR presented Congress with “Unlock America’s Economy” – a stimulus plan aimed at the housing market.

NAR will continue lobbying Congress to:

1) make it a true tax credit (not an interest-free loan)

2) extend the credit to December 31, 2009, and

3) make it available to all buyers (not just first-time buyers)