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Home Price Index increases 0.8% in April; Dallas leads way

By: Ben Kercheval

According to a USA Today article, the The Standard & Poor's/Case-Shiller 20-city home price index rose by a national average of 0.8% over the month of April. Unless you've been living under a rock, you can guess that President Obama's $8000 tax credit for first time home buyers had something to do with that increase.

Of the 20 cities included in the study, Dallas, Texas had an increase in home prices of 2% from March to April--part of a 3.3% change from a year ago. Austin, Houston, and San Antonio were not included in the study.

Vincent Guzman, one of our senior mortgage bankers here, actually has a video blog coming about the $8000 tax credit and its effect on the housing market. We will be posting that soon.

With the deadline of April 30th long past, and the closing deadline being extended to September 30th,
the housing market was expecting to see a spike in home sales, purchase loans, and home prices.

Despite a brief demonstration of growth, David Blitzer, chairman of the S&P's index, said he doesn't expect the housing market to experience sustained success until 2011. Speaking with some of our mortgage bankers here, I can tell you that we're certainly seeing a mixed bag. Dallas experiencing greater price growth in just one month is certainly good news for sellers. Considered a buyer's market for the past 2-3 years, Austin, and Texas, real estate saw declining home prices, an increase in foreclosures, and really an overall lower home value in neighborhoods.

On the flip side, the number of people refinancing their current mortgage is the lowest its been in years. However, we do predict a return to balance as we get into the third quarter of this year. As the deadline approaches for closing on loans involving first time home buyer tax credits, you'll see the number of purchase loans soften, and the number of refinances begin to slowly come back up.

Like most economic indicators, achieving balance is crucial to recovery. Moving forward, knowing which loan is right for you is important in home ownership. So if you have any questions about Texas purchase loans or refinancing your current Texas mortgage, you can always check out our Purchase Assistant, or Refinance Advisor.

American Capital Home Loans. Experience Truth in Lending.

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