Here it comes, more artificial support for the housing market.

You can't blame people for speculating on houses when they know the government will come in and try to save them.

So here we are again, warping market expectations and sowing the seeds for the next housing bubble with an extension and expansion of the homebuyer tax credits.

NYT: The Senate might pass its version as early as Wednesday, and aides to Congressional leaders say the House could accept it this week, sending the bill to President Obama to sign into law. After weeks of partisan delay in the Senate, Democrats are eager to show progress before Friday, when the October jobless report is again expected to show high unemployment.

The homebuyers’ credit — enacted last year, expanded this year and scheduled to expire Nov. 30 — would be extended to cover homes under contract by April 30. Also, it no longer would be limited to first-time buyers; people who have owned a home for at least five years could get a $6,500 credit on a new residence. Income limits for eligibility would be raised, making many more people qualify.

Read the entire article here.