The home price rise in Montana continued to exceed personal income growth in the state.

Owing to rising home prices purchasers of homes have been increasingly using adjustable rate mortgages. There has been an 18% rise in use of ARM financing of homes.

The banks and other lending institutions have been shifting residential investments away from mortgage backed securities and fixed rate mortgages towards construction loans.

There has been rising mortgage delinquencies concerning the 1-4 family mortgage portfolios. Though credit quality has improved in the state yet delinquencies remain high.

Loan concentrations in commercial real estate have increased. Loan concentration in residential real estate has also increased in the past one year.