by Calculated Risk on 10/26/2009 01:01:00 PM

Update: The Reid/Baucus proposal is to extend the tax credit and phase it out over 2010. The credit would be $8,000 through the end of Q1 2010, and decline $2,000 per quarter after that ... ($6,000 in Q2, $4,000 in Q3, $2,000 in Q4 2010)

From Bloomberg: Housing Tax Credit Probably Won’t Be Extended in U.S., ISI Says

“There could be an agreement reached as early today on the Reid/Baucus amendment that would PHASE OUT (not extend, as we originally understood when the idea was first proposed last week) the home buyer tax credit,” ISI analysts said in the note.

We should know more soon. Most economists oppose an extension of the tax credit because it is poorly targeted, very expensive per additional home sold, there was little job creation, fraud was widespread, and there are many serious unintended consequences.