More Information About Energy Saving Tax Credits

Many buyers will find themselves in the market for a new appliance or two soon after closing. Replacing appliances left behind in a sold home, no appliances in a new purchase or you might just want to upgrade from what currently exists on the property. Often times the plan might even extend further to replacing, upgrading or installing other energy saving measures such as new windows, insulation, HVAC or hot water heaters.

It does not matter if you are a new home purchaser or just looking to make some improvements to a current home, it is important to know that there is cash set aside in the American Recovery and Reinvestment Act passed last February! Here are some of the highlights:

-Tax Credit: 30% of the Cost up to $1,500
Expires December 31, 2010
Must be existing home & principal residence (No rentals)
Includes work to install new or upgrade existing: HVAC, Insulation, Roofing, Water Heaters, Windows and Doors.
Credit can only be taken off the cost of materials- not labor & installation.
Make sure you check out HOW TO APPLY for the tax credit.

-Consumer rebates for new appliance purchases
Over $300 million set aside in stimulus bill for direct consumer rebates
Each state will have its own rebate system and specific requirements.
Rebates will most likely be between $50 - $250 depending on appliance and price.
States will most likely have the program details in Dec. 2009 or early 2010
Most likely these rebates will NOT be retroactive (so you might hold off those purchases for now.)

Don't let these rebates and tax credits pass you by! They can certainly help make those new appliances and home upgrades a little more affordable. For more information and full program details be sure to check out http://www.energystar.gov/ .

How are home sales these days?

Home Sales Surge

A combination of factors helped mortgage rates improve yet again during the short Thanksgiving week. Strong demand for the Treasury auctions, low inflation, and a fragile economy were all positive for mortgage markets. As a result, mortgage rates dropped to the lowest levels since January.

The consensus economic outlook is for a gradual recovery with low inflation, and the economic data released during the week was consistent with this view. Economic growth during the third quarter of the year was revised lower, but both the Fed and private economists raised their forecasts for future growth. This week's economic reports indicated that some sectors of the economy are improving, such as the housing market (see below), while others reflected weakness. Wednesday's data on Core PCE prices continued to show little inflationary pressure, which allows the Fed to keep rates low to assist the economic recovery.

This week's home sales data far exceeded expectations across the board. October Existing Home Sales jumped 10% from September. Inventories of unsold existing homes dropped to a 7.0-month supply, the lowest level since February 2007. October New Home Sales rose 6%, and inventories of new homes declined to the lowest level in decades. Extremely low mortgage rates, high affordability levels, and the first-time homebuyer tax credit boosted sales in October.