Home prices jump 12% - KiiiTV.com South Texas, Corpus Christi, Coastal Bend

Home prices jump 12%

By Chris Isidore

NEW YORK (CNNMoney) -- The rise in home prices continued to accelerate in April, but a jump in mortgage rates could soon put the brakes on prices.

The S&P/Case-Shiller home price index was up 12.1% in April, compared to a year ago, in the 20 top real estate markets across the nation. That was the biggest annual jump in prices in seven years. Prices climbed 2.5% from March, posting the biggest one-month rise in the 12-year history of the index.

A drop in foreclosures, coupled with a tight supply of homes for sale and mortgage rates that hit record lows, have fueled the rebound in prices over the last 11 months.

But the 30-year mortgage rate has risen to nearly 4%, up from 3.35% at the start of May. While that is still low by historical standards, it's trimmed about $12,000 off of an average buyer's purchasing power. Mortgage rates began to climb in May, after April's sharp jump in home prices was recorded.

"Home value appreciation in some of these areas will have to slow down, or potentially fall, as higher prices are no longer masked by rock-bottom mortgage rates," said Stan Humphries, chief economist of home price tracker Zillow.

Indeed, the rapid rise in home prices that's fueling the housing recovery could actually help derail it, as it makes purchases more difficult for potential buyers. Even the National Association of Realtors warned last week that "home price growth is too fast," and said that the market needs significantly more home building and better access to credit for buyers.

"In general, the national housing recovery is strong and sustainable, but pockets of volatility will emerge," said Humphries. "Buyers expecting home values to continue rising at this pace indefinitely may be in for a shock."

The government will issue a report on new home sales later Tuesday morning, and economists surveyed by Briefing.com expect to see another rise in the pace of new home sales.

  • 20,000 Eggs Rain Down from the Sky During Egg Hunt

    20,000 Eggs Rain Down from the Sky During Egg Hunt

    Sunday, April 20 2014 10:00 PM EDT2014-04-21 02:00:13 GMT
    Now here's one unique way to hunt for Easter eggs! 20,000 eggs were dropped from a helicopter Sunday by one special visitor. The Easter Bunny making that special delivery today from a helicopter up above. All of the fun happening at the Church of Hope in Calallen Sunday morning. There was fun for the whole family and it was a great turnout, with more than 300 people on hand. This was the first year the church has used a helicopter to drop all of the eggs. Along with the Easter egg hunt, the...More >>
    Now here's one unique way to hunt for Easter eggs! 20,000 eggs were dropped from a helicopter Sunday by one special visitor. The Easter Bunny making that special delivery today from a helicopter up above. All of the fun happening at the Church of Hope in Calallen Sunday morning. There was fun for the whole family and it was a great turnout, with more than 300 people on hand. This was the first year the church has used a helicopter to drop all of the eggs. Along with the Easter egg hunt, the...More >>
  • Recognizing the Behind the Scene Heroes of Emergency Response Calls

    Recognizing the Behind the Scene Heroes of Emergency Response Calls

    Sunday, April 20 2014 9:00 PM EDT2014-04-21 01:00:13 GMT
    All week long, we have been celebrating the heroes who are behind the scenes when it comes to emergency response. We're talking about all of the 9-1-1 dispatchers. Today we caught up with the DPS dispatchers who are spending their Easter weekend answering your emergency calls. The DPS operators are on duty 24 hours a day seven days a week and get this, they serve 18 counties in the South Texas area. Not only do they help dispatch State Troopers for DPS, but they also help Texas Parks and Wil...More >>
    All week long, we have been celebrating the heroes who are behind the scenes when it comes to emergency response. We're talking about all of the 9-1-1 dispatchers. Today we caught up with the DPS dispatchers who are spending their Easter weekend answering your emergency calls. The DPS operators are on duty 24 hours a day seven days a week and get this, they serve 18 counties in the South Texas area. Not only do they help dispatch State Troopers for DPS, but they also help Texas Parks and Wil...More >>
  • Labonte Park was a Popular Place for Campers on Easter Sunday

    Labonte Park was a Popular Place for Campers on Easter Sunday

    Sunday, April 20 2014 8:00 PM EDT2014-04-21 00:00:09 GMT
    We headed out to Labonte Park, one of the most popular camp sites on this Easter Sunday to see how families there were enjoying the day! The park located just off I-37 was filled with families camping out. People have been camping out all week just to make sure they got a good spot! The weather was definitely in their favor. It seems no one was safe from the cascarones, as some of the campers organized an attack on our very own kiii camera man, Jay Pena.More >>
    We headed out to Labonte Park, one of the most popular camp sites on this Easter Sunday to see how families there were enjoying the day! The park located just off I-37 was filled with families camping out. People have been camping out all week just to make sure they got a good spot! The weather was definitely in their favor. It seems no one was safe from the cascarones, as some of the campers organized an attack on our very own kiii camera man, Jay Pena.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KIII. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.