According to CNBC, home prices are increasing but they are not in bubble levels just yet. In fact, they are far from it.

"When you start to see interest rates rise, people are going to want to jump in," said Beth Ann Bovino, deputy chief economist at Standard & Poor's. "All those people on the fence come back into the market. But that's a good thing."

"We've had four years of cleaning up our balance sheets, getting our fiscal homes in order," she said. "I think we do have the capabilities to cushion that blow (from higher rates)."

Article includes a helpful home price tracker graphic.