Home Prices Are Rising in Chattanooga

The title says it all. According to a recent articles in the Chattanooga Times Free Press, home prices in Chattanooga rose by roughly 6 percent in the last year. Though our home prices are still a third the national average, this could potentially be distressing for younger or lower-income families and individuals seeking to purchase a home in the near future. Here's a chart displaying median prices for homes in other major regional cities:

But what might really prove more distressing in the long run is a rise in interest rates, brought on both by the financial recovery and actions taken by the Federal Reservce. Quoting from the Times Free Press article:

Home buyers also will likely face higher interest rates over the next couple of years as the Federal Reserve begins to tighten its monetary policies by ending its bond purchase program at the end of 2014. Yun predicts that mortgage rates, which now average about 4.1 percent, will rise to about 6.15 percent by 2016 as inflation and the economy heat up and the Federal Reserve ends much of its stimulative monetary policy.

To read the rest of the Times Free Press article, click here.