Interest rates are stifling local growth

TO THE EDITOR:

As a local REALTOR®, I see daily how Federal Reserve monetary policy impacts our community.

Raising interest rates to curb inflation fails because today’s price spikes stem from supply shortages, fuel costs, and material inflation, not consumer overspending.

High interest rates cannot build homes or repair supply chains; they simply penalize local growth.

The real estate market faces a triple squeeze from land development to the closing table.

Floating-rate acquisition and development loans make new subdivisions financially unviable, halting land acquisition and guaranteeing a future lot shortage.

Construction financing costs crush builders who pay elevated material prices while absorbing prime interest rates over eight percent on credit lines, forcing them to shrink inventory or pass expenses to buyers.

Meanwhile, higher mortgage rates create a severe lock-in effect where homeowners refuse to sell, stripping resale inventory and stripping buyer purchasing power.

Continuous rate hikes risk pushing our local economy into a recession while leaving supply-side inflation unaddressed. Policymakers must champion targeted supply-chain fixes rather than stifling housing and small business stability.

ED HALLYBURTON

REALTOR®