One proposal in President Biden’s State of the Union address was to help potential homebuyers and current homeowners. Biden proposed a $10,000 mortgage relief tax credit for first-time homebuyers. It would provide a $5,000 credit for two years. He also proposed a one-year credit of up to $10,000 to middle-class families who sell their starter homes, defined as homes below the area median home price. One goal of the proposals is to unlock inventory of affordable homes by providing an incentive to current homeowners who are reluctant to sell because they’ve locked in low mortgage rates compared to today’s higher rates. It’s uncertain if the proposals can garner enough support to become law.
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