Congress won't let the housing tax credit die

It was originally supposed to expire last fall, but now it will live on through September.

First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday.

President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.

The bill doesn't help anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized.

Qualified existing homeowners also have until Sept. 30 to close on new homes and receive a tax credit of up to $6,500.

If housing prices begin to decline again, as is widely expected, I bet Congress will listen to NAR lobbyists and bring back the tax credit in the fall.