Homebuyer’s Credit: It Might be Better to Wait

If you are rushing to purchase a home and sign a binding contract before May 1, 2010 in order to get the homebuyer’s credit (a maximum $8,000 for first-time buyers or $6,500 for repeat buyers) and secure a low mortgage rate, it might be better to wait especially if you are still unsure.  According to Jack Hough at SmartMoney, once these incentives disappear, interest rates will increase 0.75% but home prices might drop as much as 5%.