San Antonio-New Braunfels, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

The San Antonio-New Braunfels, TX, Federal Housing Finance Agency (FHFA) house price index for the third quarter of 2019 was 243.7. This is a 0.4% increase from the second quarter of 2019 and a 4.5% increase from the third quarter of 2018. The FHFA house price index is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties.

In the San Antonio-New Braunfels metro area, home prices have been rising steadily for the past few years. In fact, since bottoming out in early 2012, prices have increased by more than 50%. The strong job market and population growth in the region have been key drivers of this housing market recovery.

With prices rising and interest rates remaining low by historical standards, many homeowners are now considering tapping into their home equity through either a cash-out refinance or a home equity loan/line of credit (HELOC). According to Black Knight’s Mortgage Monitor report for November 2019, there are now more than 14 million homeowners with tappable equity – an all-time high!

As you can see in the chart below, HELOC originations are up nearly 30% from last year while cash-out refinance activity has also increased significantly. With home values continuing to rise and more homeowners regaining positive equity positions, we expect this trend to continue in 2020.

If you’re thinking about tapping into your home equity, it’s important to understand both the risks and rewards involved. On the plus side, using your home equity can be a great way to finance major expenses like college tuition or home renovations. And because your home serves as collateral for these loans/lines of credit, they usually come with lower interest rates than other types of financing such as personal loans or credit cards. Additionally, if you itemize your taxes you may be able to deduct some or all of the interest paid on your loan each year (consult your tax advisor for details).