Conclusion of federal tax credits not likely to derail home sales

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The expiration of the federal tax credits for home buyers is not likely to prevent home buyers from purchasing, according to a survey by Prudential Real Estate and Relocation Services, Inc.  According to the survey, among home buyers currently shopping for homes, 65 percent believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.
Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns.

Among current renters, 75 percent still believe owning their home is a better long-term choice for their needs than renting. The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75 percent), mutual funds (72 percent), or savings accounts (74 percent).

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