Page 8 - Builder Brief October 2025

2 0 2 5 P R E S I D E N T
FEDERAL RATE POLICIES,
LOCAL MARKET GAINS, AND
UPCOMING MEMBER EVENTS
We all have our eyes on interest rates and the next steps the Federal
Reserve will take to address the housing affordability crisis we are currently
facing. Dr. Rob Dietz, Chief Economist for the National Association of Home
Builders (NAHB), recently shared that single-family production remains at
reduced levels due to ongoing challenges in housing affordability, including
persistently high mortgage rates, a skilled labor shortage, and excessive
regulatory costs.
Given the slowing housing market and the release of other recent
economic data, the Federal Reserve’s monetary policy committee should
return to lowering the federal funds rate, which will reduce financing costs
for housing construction and indirectly help mortgage interest rates.
While a mortgage interest rate drop may not be significant, it can be
meaningful. If mortgage rates hit the 6% mark on a 30-year fixed-rate
mortgage, around 5.5 million additional households could afford a home,
according to data from our friends at the National Association of Realtors
(NAR). We are hopeful that when interest rates start to fall to that level, the
housing market will see an increase in activity.
But on the broader economic front, uncertainty regarding policy on tariffs
remains a headwind for economic growth. The on-again, off-again nature of
the tariffs and threats of higher levies has already hurt housing affordability by
creating business uncertainty and disrupting building material supply chains.
One thing is certain: we are all fortunate to live and work in San Antonio,
where Zonda recently reported that our market is slightly outperforming.
In August, Zonda reported that the new home market saw a modest 2.1%
month-over-month increase in total transactions. This growth was supported
by a 10.8% rise in new home inventory and coincided with many builders
launching sales campaigns. Additionally, sales continued to be supported
by the widespread use of incentives and price reductions.
As we look at the fourth quarter of 2025, I would like to invite you to attend
two important events in October. The Young Professionals Leadership
Council (YPLC), chaired by Margo Villarreal and Mitch ViVenzio, will be
hosting the annual Chili Cook-Off on Friday, October 17th, at GSABA in the
parking lot. Please join us from 5:00 p.m. to 9:00 p.m. If you have a great
chili recipe, we invite you to compete! Yours truly will be competing for the
first time and entering my chili this year. I challenge any other builders to
enter theirs also. It is a day full of family, friends, and fun, with plenty of chili,
a cornhole tournament, and cold drinks too! There is more information on
page 9 of this Builder Brief.
On Thursday, October 30th, the San Antonio Builders Political Action
Committee (SABPAC), along with the GSABA Senior Officers and SABPAC
Trustees, will host our annual 3rd PAC event at the San Antonio Gun Range to
raise money for SABPAC. This event raises funds that enable us to support
pro-housing and pro-business candidates and elected officials on the local,
8 OCTOBER 2025 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
J E F F K U W A M U R A
state, and national levels. This is one of the most
important events that we host each year. Last year
we had 14 elected officials attend. We sincerely
need your support for this important event catered
by Black Tie Affairs.
In closing, I would like to thank Keith Zars Pools
and their exceptional team of professionals for
hosting our September Membership Mixer. We
had one of the best turnouts to date! I would also
like to thank StrucSure Home Warranty and Scott
Whisenant for serving as Chairman and our title
sponsor for the golf tournament held on Monday,
September 29th. Thank you to all our incredible golf
tournament sponsors. We could not accomplish
what we do without your support!
Sincerely,
Jeff Kuwamura