White House may extend homebuyer tax credit

WASHINGTON - The White House is considering extending an $8,000 tax credit for first-time homebuyers.

Spokesman Robert Gibbs says the administration's economic team is evaluating the tax credit's impact on new home sales and will make a recommendation to the president.

The federal tax credit covers up to 10 percent of the home price, or up to $8,000, for first-time buyers. Home sales must be complete by the end of November.

The tax break is credited with helping the number of U.S. home sales rise slowly. Builders and real estate agents say that trend could be reversed if the credit isn't extended.

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