Jan 24 2008 12:18PM | Permalink | Email this | Comments (0) |
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Last week, I wrote about the rumors flying around that a economic stimulus package was on the way. At the same time, I said I didn't think it would do anything to help the housing crisis, an opinion voiced by many others, as well.

Well, it looks like the government was listening (I know, shocking, isn't it?). The deal announced today between the White House and Congressional leaders increases to $725,000 (from $417,000) the cap on Fannie Mae and Freddie Mac loan purchases in high-priced markets. This should make it easier for people to purchase homes that would fall into the "Jumbo" mortgage market. (For more on the deal read here.) So at least there's something for housing in there.

I still have my doubts about how much this will help. After all, the effect will need to be mostly psychological. Those rebate checks - the supposed centerpiece of the package - probably won't start showing up until this summer.

On the plus side, there are also some new tax breaks for small businesses that may help you out as well, mostly related to increased write-offs on equipment.