Interest Rate Cut Helps Coast Housing Market

After a year and a half slowdown, some realtors say the coast housing market really needed a shot in the arm. Earlier this week, it got just that. The federal reserve slashed interest rates by half a percentage point.

The government's attempt to stimulate the economy means good news for home buyers looking for a good deal. Steve Simmons and his wife Teresa are looking for a place to call home. They say with interest rates going down their chances of getting the house they want are going up.

"The interest rate is helping a lot at this point 'cause we were a little nervous about it," Teresa Simmons said. "But it seems like the rates are dropping down."

In the past 18 months, realtors say housing construction has slowed and homes have been taking longer to sell. They say lower interest rates should get more people interested in buying new homes.

Real estate agent Jim Atchison said "They can afford more [a bigger] house and have the same payments. It encourages them to get out and start looking for homes. It definitely will help our market."

Home buyers like the Simmons will probably be watching interest rates closely the next few days to see what federal reserve has to offer before they make an offer on their new home. Some coast realtors say there could possibly be another cut in interest rates some time next week.

by Danielle Thomas