Four reasons why you should stop renting

If you have not bought a house for three years, the United States government is about to hand you $7,500. There is one catch. You have to invest in the American Dream and buy a house. Luckily, if that is what you want to do anyway, you appear to have hit a miniature jackpot. Last year's Housing and Economic Recovery Act offered new homeowners a $7,500 tax credit if they bought a home before June 30. According to that plan the $7,500 tax credit would be repaid over 15 years with annual payments of $500 added from the borrower's income tax bill. The credit is an excellent deal, since it offers home buyers what amounts to an interest free loan. But the Congress and President Barack Obama have vowed to sweeten that deal by extending the credit and delaying repayment. For first time homeowners, this promises to be a one-time bonanza during the best time in history to buy a home. Here are just some of the reasons why the cost of housing will probably never be more economical. 1 Inventory of new homes is tightening. That means there are fewer new homes for buyers to buy. It's basic economics: When the supply goes down, the price goes up. 2 Congress is moving to close off the dribble of foreclosures on pre-owned homes. Again, with fewer houses going on the market via foreclosure, the supply of homes will go down and price increases will soon follow. 3 Interest rates are fantastic right now. The best borrowers can now get 30-year mortgages at rates under 5 percent. 4 Obama's promised new stimulus packages will likely extend and sweeten deals for homeowner. The fact is that now might be the best time in your life to buy a home.