SOUTH BEND — A key index of national housing sales is on the rise for the first time in more than a year, fueled in large part by those buying a home for the first time. Economists say "free money" from the federal government's stimulus plan is one big reason why.

Colleen Cary of Osceola is ready to take that next big step. After nine years in the working world, she knows exactly what she wants.

"Something I can be comfortable in and afford!" she said. "It's a buyer's market. So, I thought it would be a good time to do it."

Cary has also found the path to home ownership can be filled with tough questions.

"It's been confusing," she said. "There are different mortgages. What kind do I want? Do I want a first home owner's loan? Do I want a conventional?"

Throw in the federal government's new $8,000 tax credit for qualifying first time homeowners, and things get even more confusing.

So Cary went searching for answers Wednesday night at a home buyer seminar put on by local Realtors and mortgage lenders from Polack Realty and Landmark Mortgage Group.

"People are confused by a lot of the information they've heard out there. They don't know how to decipher it," said Nancy Schrader, a broker associate with Polack Realty.

"That's our intent with the meeting is to try and educate people. And, I think people have a genuine interest in it, because now is a wonderful time to buy a home," she continued.

Schrader and other experts at the seminar answered questions on everything from property taxes to escrow accounts and that federal tax credit.

"So many people are thinking that they can't be a homeowner, when it might be something so simple that it's not a problem," said Pam Ender, Senior Vice President and Loan Officer at Landmark Mortgage.

"But, it is important to do your homework. Look at any challenges or blemishes on your credit and talk about it. Because, it might be an issue. It might not be an issue," she said.

Among the unanswered questions: will new first time home buyers like Cary be enough to turn the struggling housing market around?

"New home buyers are going to be a small portion of the housing demand. And yet, they may be the essential portion," said Dr. Jerome McElroy, an economics professor at Saint Mary's College.

"The most unstable element in the total economy is business spending. Housing makes up over 25% of business spending. So, a small increase in housing sales may say a lot. First time home buyers are leading that charge," McElroy continued.

Those "first-timers" are already starting to make an impact.

While housing sales remain weak, the national index of pending housing sales has been on the rise--thanks, in large part--to first time home buyers.

That has also helped boost the U.S. Consumer Confidence Index by more than 5 points in the last month alone, McElroy said.

"When we start to see sales pick back up, that has a very strong confidence effect on the rest of business across the economy that's related to the housing sector. We've still got a ways to go, because we have to get rid of all of this housing inventory, and that will take some time. But, when it comes to new home purchasers, I think you have to say--hey, there is an impact, and it's beginning to be felt,'" McElroy said.

It's all music to Cary's ears.

Her hope now is that her American dream will finally come true.

"It's exciting thinking that it might actually be mine!" she said.

Still, there's a long road between "excitement" and "ownership." Experts caution the housing market won't turn around overnight. But, Dr. McElroy believes this is another positive sign that that housing bubble may still be on track to burst before the end of the year.

If that happens, he says it won't take long before the recession begins to burst, too.

The First-Time Home Buyer Tax Credit is equivalent to 10 percent of the purchase price; up to $8,000. It does not have to be repaid.

A first-time home buyer is someone who hasn't owned a principal residence for three years.

Only those who purchase a home January 1-December 1, 2009, are eligible.

There are income requirements. Single buyers must have an adjusted gross income of $75,000 or less to qualify for the full credit. It's $150,000 for married couples.