The news of the week will be President Obama’s signing of the stimulus plan.  The legislation will include a tax credit of $8,000 or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years. Still a great deal for buyers and hopefully a real incentive to purchase sooner rather than later. 

We'll get news on the inflation (or deflation) front, with Thursday's Producer Price Index (PPI) Report and Friday's Consumer Price Index (CPI) Report. With the recent concerns about deflation, it will be important to see which way these reports have moved, and what the impact may be on home loan rates.

Property Tax Deduction for Non-Itemizers: Before 2008, only people who itemized their deductions could deduct property taxes. For 2008, individuals who do not itemize can deduct up to $1,000 of property tax on a joint return or $500 on a single return.

The Dow Jones industrial average, S&P 500 and Nasdaq futures are sharply lower this morning with a comparison to fair value, suggesting a dismal start on Wall Street.  This once again shows the more conservative choice of fixed investments to be the smarter and safer way to navigate through this economic tome for the foreseeable future, especially if you are in or approaching retirement.

 

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