Proposal would phase out homebuyer tax credit: ISI

NEW YORK (Reuters) - U.S. lawmakers are working on a proposal to phase out the tax credit for first-time homebuyers over 13 months, according to a note from research group ISI Group Inc.

U.S. share prices fell and the dollar rose on Monday after a media report quoted ISI as saying the tax credit probably would not be extended when it expires at the end of November.

An agreement in the Senate could be reached as early as today, the ISI note said.

The current tax credit has spurred a rise in home sales and lifted prices around the United States.

Under the plan reported by ISI, home buyers would get $8,000 if they close by the first quarter in 2010, $6,000 if they close by the second quarter, $4,000 by the third quarter and $2,000 by the fourth quarter.

(Editing by James Dalgleish)