Derek English: Interest Rates And Inflation Increase Irritation

Wednesday, April 27, 2022 - by Derek English, president, Greater Chattanooga Realtors

It is no secret that we’re all feeling the pinch of inflation. No matter where you look, most items we purchase cost us much more than they did just a year ago. Inflation isn’t just affecting gas and groceries; it’s having a massive impact on housing costs.  

 

Inflation and interest rates usually mirror one another, and the current situation is no exception.

The 30- year fixed-rate mortgage jumped to a 5% average this past week – the highest since 2011. This year alone, mortgage rates have increased by over 1.8 percentage points.  

 

Yes, that sounds like a lot, but most of us don’t think in terms of “percentage points.” Translated into layman’s terms, it means that, on average, a homebuyer entering the market now will pay $400 more per month than a year ago for a median-priced home. It’s more than percentage points – it’s real dollars and cents. Impacting buyers entering the market.  

 

Gay Cororaton, research economist at the National Association of Realtors (NAR), recently observed that the average consumer is spending $500 more a month on living expenses than a year ago. Thus, homebuyers may need to lower their budgets to keep pace. Cororaton also adds that house hunters would be smart to search for a home that is about $40,000 cheaper than a year ago because of the rising costs. That $40,000 makes a big difference in the type of property you’re pursuing. 

 

“As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices, and tight inventory are making the pursuit of homeownership the most expensive in a generation,” writes Sam Khater, Freddie Mac’s chief economist. Because of these factors, Dr. Lawrence Yun, NAR’s chief economist, has predicted home sales to decrease by 10% in 2022. Home prices, however, are expected to continue to increase about 5% due to the low inventory of homes for sale.  

 

So, this sounds a bit daunting if you’re looking to enter the housing market, right? Well, while the process might be frenzied, having a realtor who works with you is the best way to help get the right property for you and your family. Realtors work non-stop for their clients and community to help achieve the dream of homeownership. 


2-Story Office Building In East Ridge Sells For $1.3 Million

Property At 700 E. Main By The Railroad Sells For $2.1 Million

Strip Mall In Hixson Sells For $10.75 Million


A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. ... (click for more)

A long stretch of vacant land just off Main Street on the Southside has sold for $2.1 million. The location at 700 E. Main is between Madison Street and the railroad. The sale was to Chattanooga ... (click for more)

A strip mall at 5380 Highway 153 in Hixson has sold for $10,750,000. Developer Bassam Issa sold the property to Paulina Limited Parnership. The property is occupied by Gabe’s, Ollie’s, ... (click for more)



Real Estate

2-Story Office Building In East Ridge Sells For $1.3 Million

A two-story office building in East Ridge has sold for $1.3 million. The location is 5512 Ringgold Road. Built in 1987, it has s paces ranging from 510 square feet up to 5,000 square feet. The sale was to T4 Llc from Nandlal Khatri. (click for more)

Property At 700 E. Main By The Railroad Sells For $2.1 Million

A long stretch of vacant land just off Main Street on the Southside has sold for $2.1 million. The location at 700 E. Main is between Madison Street and the railroad. The sale was to Chattanooga Builders Llc from General Electric Co. New residential units are expected to go up at the site. (click for more)

Breaking News

Supt. Robertson Sees "Many Positive Results" In Latest TCAP Data

Hamilton County students scored at or above statewide proficiency levels in more than 64 percent of tested areas during the 2021-22 school year according to district-level TCAP results released by the Tennessee Department of Education on Wednesday morning. Of the 28 content areas tested in grades 3-12, Hamilton County students met or exceeded proficiency scores from the state ... (click for more)

EPA Awards Chattanooga $4.9 Million To Clean Up Polluted Sites

At a press conference at the U.S. Pipe/Wheland site, Environmental Protection Agency officials announced that the federal agency has awarded Chattanooga $4.9 million in funding to tackle brownfields in the city, "helping turn contaminated sites into productive economic opportunities." The funds consist of two $500,000 grants - one for analysis, one for cleanup - and $3.9 ... (click for more)

Opinion

Dangerous Dam At Ketner's Mill Has Claimed Too Many Young Lives

Something must be done about the dangerous low head dam at Ketner’s Mill on the Sequatchie River in Whitwell, Tn. (Marion County). This dam is a dangerous public safety hazard that has claimed the lives of many young people through the years. It seems to me to be grossly negligent for the owner of this dam (which no longer serves any purpose) to continue to allow unknowing ... (click for more)

Uncovering Chattanooga’s Hidden Gem

Missionary Ridge is Chattanooga's "diamond in the rough" that can spearhead a new era in our city's growth. Way back on Nov. 25, 1863, soldiers under the leadership of General Ulysses S. Grant stormed Missionary Ridge and broke the back of the Confederacy. The Battle of Missionary Ridge demonstrated the superior forces of the industrialized North and gave their soldiers a chance ... (click for more)