Job Growth and Favorable Mortgage Rates Fuel Dallas Home Purchases

By Joe Taylor Jr.
Local Lender Columnist
May 12, 2006
New Federal Reserve Chairman Ben Bernanke recently raised mortgage rates again with statements that more increases will follow. While the Fed's moves have cooled real estate sales in some major cities, Dallas enjoys a strong housing market fueled by job growth and affordable mortgage opportunities.

Before you buy a house or refinance a mortgage in Dallas, be sure to consider your financial situation over the next few years. Despite strong appreciation in the Dallas metropolitan area, experts warn against using an interest-only mortgage to move into a house that's out of your current price range. With some Dallas homeowners winding up in foreclosure, it's good to find a mortgage rate that you can live with even if your home does not increase in value.

Fixed Rate Mortgages Best Long-Term Deals

Even with the Federal Reserve trying to use mortgage rates to slow inflation, Dallas residents can still find some excellent deals on fixed rate, thirty-year mortgages. With no indication that mortgage rates will drop in the near future, it would be smart to stick with a fixed-rate mortgage unless you:

• Plan to stay in your house only a few years.
• Are confident your income will increase in value.
• Intend to leverage your home as an investment or as a rental property.

Dallas remains one of the top real estate markets in the nation. Like other top markets, Dallas has started to attract speculators looking for the next big wave. If you already live or work in Dallas, now is a great time to lock in a great rate from your preferred mortgage lender, so you can shop for a home before appreciation surges again.

Sources:
ABC News
Dallas Morning News
My San Antonio Reuters

About the Author
Joe Taylor Jr. has covered business and finance news for Financial Times Television and CNBC. He coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.