Hampden Township, Pa. - Realtor Sherrie Heilig of RE/MAX in Linglestown says there is no doubt about it: The $8,000 federal tax credit for first time home buyers is working to stimulate the economy. And now Congress has voted to extend the tax credit, which was set to expire at the end of this month.

"There are a lot of first time home buyers that have taken advantage of it so far," Heilig said. "Now that they've extended it, I'm sure there are a lot of buyers out there that weren't quite ready and now they're going to jump on it."

Heilig was showing a home in Hampden Township that is on the market after foreclosure. Possible first time home buyer Courtney Wright of Mechanicsburg thought she'd take a look.

Wright said if she and her husband decide to buy, the tax break could factor into their decision. "We're renting right now," she said. "We've been renting for a while. We just got married in May so we want to find our first home."

Under the just passed law, the $8,000 tax credit for first-time home buyers will be extended for seven months. The new law also expands the credit to include people who have already owned a home for at least five years. They can get a $6,500 federal tax credit if they buy another home for a primary residence.

President Barack Obama (web | news | bio) said he will sign the bill, which also extends unemployment benefits, on Friday.

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