Realtors and home builders are praising the efforts of Congress to help the ailing housing market and not just help borrowers facing foreclosure. The move involves giving a tax credit for first-time home buyers to boost sales.

On a bill passed on May 8, the tax credit would induce many Americans who don't own a home "to at least take a look at what's out there," said Jerry Giovaniello, senior vice president and chief lobbyist for the National Association of Realtors.

After the house bill passed in May 8, it is expected that Americans who don’t own a home will get encouraged to make buy. It is seen that many will buy since interest rates are low, prices are low and housing inventory is good.

NAR Chief Economist Lawrence Yun predicted the tax credit would boost sales of new and existing houses by 1 million homes over a year.

It would bring annualized home sales to 6.5 million, compared with their current pace of 5.5 million. That's still well below the "frenzy level" of 8.3 million in 2005, he said.

"It is just a restoration of home sales to the pre-boom years," he said.

The National Association of Home Builders is more conservative in its estimate of the tax credit's impact. NAHB expects the credit, as currently written, to boost sales by nearly 100,000 homes. The indirect impact would be bigger, since many owners of homes sold to first-time buyers would then buy new homes themselves, said Jerry Howard, the association's CEO.

An increase in housing activity would help millions of existing homeowners as well as those who depend on building and selling homes for a living, tax credit supporters contend.

Under the bill, first-time home buyers would be eligible for a tax credit of up to $7,500 to use as a down payment for a house. The amount of the credit would phase out for higher-income taxpayers. It would have to be used within a year of the bill's enactment.