Tax Credit Fuels Surge in April Home Sales

7.6% jump in resales is best showing in 5 months
Source: Associated Press

Homebuyers rushed to take advantage of government incentives and low mortgage rates in April, giving the housing market its biggest boost in five months.

But now that a homebuyer tax credit has expired, any improvement will depend mainly on the lure of historically low mortgage rates.

Some economists say that won't be enough. "Although mortgage rates have fallen sharply, the combination of high unemployment, heavy indebtedness and tight credit suggest to us that demand will stumble," said Paul Dales, an economist at Capital Economics.

Sales of previously owned homes rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million, the National Association of Realtors said Monday.

For the Full Article, click on this link....
http://www.msnbc.msn.com/id/37303800/ns/business-real_estate