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orth Bay real estate and financial industry stakeholders expressed optimism on Wednesday after the Federal Reserve cut its benchmark interest rate to 4.9%. This move, a half-percentage point reduction of 50 basis points, was larger than expected.

    "It's a good move," said Matt Delaney, an adviser at JDH Wealth Management in Santa Rosa. "We need to grow our economy and get corporations to spend their cash." The rate cut is the first since 2020, and Delaney believes it will help spur demand and increase hiring.

    The lower interest rate will benefit the housing market, which has been struggling with low inventory and high prices. A 30-year fixed-rate loan has hovered around 6.2%, dropping from a high of over 9% in recent years. According to Delaney, this change could lower his client's monthly payment by about $1,200.

    Compass Healdsburg Realtor Carol Lexa noted that while the rate cut is positive for buyers, it's not a silver bullet. "It's complicated," she said, referring to the delay between the benchmark rate changing and how it translates into the rates lenders offer. Lexa also pointed out that inventory in the North Bay has remained low.

    Art Geier, a Santa Rosa broker with Cross Country Mortgage, agreed that multiple rate cuts are needed to see movement in the housing market. "Prospective buyers are circling in wait for the market to open up supply," he said. The Fed is expected to make another rate cut at the end of the year and lower borrowing costs by another full percentage point by the end of 2025, bringing the benchmark rate to 3.4%.