Despite the anticipation of rising mortgage interest rates, Realtors in Chattanooga, Tennessee report a continuing strong housing market.

"Welcome to the Scenic City," say Realtors Terry and Susan Barnette. "Market trends in Chattanooga continue to look great, despite the anticipation of rising interest rates. The continued strength of the local housing market can be attributed to the stable economy and job market."

The reason? "Thick forests and steep overlooks; limestone caverns and underground waterfalls; beautiful mountains and scenic rivers; now you know why we're called the Scenic City," say the Barnette team. "From the world's largest freshwater aquarium to a hands-on museum just for kids, Chattanooga has a lot to offer for everyone in your family. Tennessee's largest mall; a prime outlet center boasting many designer labels; a quaint row of unique boutiques along the shores of the Tennessee River."

"With the unexpected fall in interest rates earlier this month," says Realtor Bruce D. Gillham, "the market continues to flourish. If you have been considering a move, now is the time to do it. Mortgage rates don't necessarily rise when the Federal Reserve raises short-term rates. Sometimes, they even drop, as they have in the past six weeks. The Fed boosted the federal funds rate a quarter percentage point on June 30, the first rate increase in four years, and since then the average rate on a 30-year fixed-rate mortgage has dropped almost half a point. The Fed raised the rate another quarter point August 10, and this week the benchmark 30-year fixed-rate mortgage fell 11 basis points to 5.91 percent, according to the Bankrate.com national survey of large lenders, the lowest it has been since the first week of April, at 5.80 percent. In other words, there's plenty of money to be loaned and that's way the rates are staying low."

Gillham explains, "Nationwide existing-home sales set a record pace of 7.79 million units in this year's second quarter, according to an NAR survey. This seasonally-adjusted annual rate for existing single-family, apartment condominium and co-operative home sales represents a 16.0% increase over the 6.72 million-unit pace in the same period last year. Double-digit growth was seen in 34 states and in the District of Columbia, when compared to the same quarter in 2003. No states recorded declines, though complete data for two states was unavailable. The previous record pace was 7.36 million, set in 2003's third quarter."

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Published: September 29, 2004

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