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Senate Approves Homebuyer Tax Credit Extension - The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date. The credit would be available until April 30, 2010.

Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer. Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.

Mortgage Applications Increase 8.2%. Refinance Demand Up 14.5% - In last week's release, which reported data for the week ending October 23, mortgage application activity fell 12.3% even as mortgage rates dropped from 5.07% to 5.04%. The Refinance Index, decreased 16.2% from the previous week while the seasonally adjusted Purchase Index moved lower as well, decreasing 5.2% from one week earlier. The refinance share of mortgage activity fell to 62.3% of total applications from 65.0% in the previous week. In today's release, which covers new loan applications for the week ending October 30, the MBA reported that demand for new mortgages increased 8.2% and the average 30 year fixed mortgage rates fell from 5.04% to 4.97%.