Market Minutes

As a result of last week’s economic news, mortgage rates improved slightly. News included a worse than expected consumer confidence reading and a slightly better than expected GDP. The GDP numbers are grossly skewed thanks to the Cash for Clunkers and first time homebuyer tax credit programs. This Wednesday the Federal Open Market Committee will meet and issue a policy statement and the ADP National Employment Report will be published. Thursday’s initial jobless claims and Friday’s non farm payroll may be market movers. There is also speculation that a vote could come as soon as this week to extend and broaden the homebuyer tax credit until April 30, 2010. Details below:

* $8,000 tax credit would remain in effect for first time homebuyers
* New $6500 “move up” credit for homebuyers owning a home 5 of the last 8 years.
* Eligible sales price increased to $800,000.
* Income limits increased to $125,000 for single filers and $225,000 for joint filers.

Check back regularly for updates on this legislation and more.