Montana News
Interest rate cuts could shake up Montana's housing market
With Montana News, I'm Eleanor Smith. The Federal Reserve Wednesday cut interest rates for the first time in over four years. MTPR's John Hooks takes a look at how the decision may impact Montana's housing market. - Montana's housing market has largely been frozen in place for the last couple years. High interest rates have made buyers hesitant to pull the trigger. Sellers have been reluctant to part ways with historically low rates they locked in during the pandemic. DJ Smith is Imazula Realtor and President of the Montana Realtors Association. He says the Fed's half a point rate cut could be the spark home buyers need to jump back into the market. The Fed expects to lower rates by one and a half points by the end of 2025. - We're gonna find ourselves here where it can be an argument to buy because you can obviously refinance in the years to come. - Increased buyer demand could drive home prices up. But Smith says lower interest rates make it easier for developers to finance construction of new homes. That could help ease Montana's inventory shortage and lower prices in the long run. In Butte, I'm John Hooks.