According to National Mortgage News (NMN), the White House is still “mum” on whether or not lawmakers will vote to extend or expand the $8,000 first-time homebuyer tax credit.

If you’re still unsure about taking advantage of the credit, the clock is ticking. All the way back in August we warned borrowers that, with the November 30 deadline fast approaching, they needed to act A.S.A.P. “The mortgage process usually takes anywhere between 45 and 60 days,” advises HSH VP Keith Gumbinger.”

Over the last two days White House Press Secretary Robert Gibbs has addressed reporters’ questions regarding the credit’s extension. Yesterday, Gibbs confirmed that a decision hasn’t yet been made, and, according to NMN, Gibbs had the same to say during this morning’s briefing.

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The biggest news involving mortgage rates last week was the Fed’s decision to extend, not expand, the term of their $1.25 trillion MBS purchase program into 2010.

According to the latest issue of HSH’s Market Trend’s Newsletter — ‘Mortgage Rates on Extended Life Support’ — “Anyone who believed that the Federal Reserve would flip a switch and exit the mortgage market at the end of this year was proven wrong this week. The Federal Reserve extended the term of its $1.25 trillion MBS purchase program at least until March 31, 2010. Approximately two-thirds of that money has already been spent, and with the rest now being slated to be spread over a longer period of time, it necessarily means that the Fed’s influence over conforming mortgage rates will wane somewhat.”

“The overall average for 30-year FRMs moved just a lone basis point this week. HSH’s FRMI closed Friday with five-day average of 5.49%. The FRMI’s 5/1 Hybrid ARM counterpart shed two basis points, landing a 4.82%. Thirty-year FRM jumbos nudged closed to the 6% mark, a level last breached in September 2005.”

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While there has been ample speculation over whether or not Congress will vote to extend the first-time homebuyer tax credit, yesterday’s announcement by the Federal Reserve to extend their purchases of mortgage-backed securities (MBS) until March 2010 has increased the chatter amongst us and others in the industry that the tax credit might just be extended until the end of March as well.

It Makes Sense

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