For the first time in nearly a decade, America’s interest rates have seen an increase.
The rate hike is a small one—with the Federal Reserve raising rates on December 17, 2015 from a range of 0% to 0.25% to a range of 0.25% to 0.5%—but will have an impact on many new home buyers.
Although the increase isn’t a welcomed change for investors and home buyers, it’s a good indicator of the economy healing and becoming stronger since the Great Recession. Thankfully the unemployment rate is now at 5%, as opposed to 10% in 2009 during the worst of the job crisis. Now that more than 12 million jobs have been added since the recession and wages are finally beginning to creep upward, the economy is looking much better than it has the last few years.
The near zero rates set in 2008 were never meant to last long, but were to help stimulate the economy and offer a crutch for the collapsed housing market. Now that we are looking at a better economic state, it was a next step for the rates to take a small increase.
The Federal Reserve released a statement that said it will be cautious with future rate hikes in order to continue to promote economic recovery. The rates are slated to remain fairly low for a while and when they do increase, they will do so gradually.
With rates still at a low and Chattanooga’s average home price an attainable $182,149 in 2015, now is a great time to buy a home. The rates will continue on their uphill climb, but homebuyers looking to capture the lower rate should consider starting the home search now.
Let us help you get started! Below are Hamilton County homes listed at the average price of $175,000 to $200,000, easily attainable for a potential home buyer.
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